Latest news with #Lloyds'
Business Times
3 days ago
- Business
- Business Times
UK business confidence hits 9-month high in boost for Starmer
[LONDON] A gauge of UK business confidence rose to a nine-month-high, climbing back to a level not seen since Prime Minister Keir Starmer first took power, as markets rebounded and trade tensions eased with the US. The Lloyds Business Barometer sentiment gauge rose to 50 in May, the highest since August, according to a survey released on Friday (May 30). The 11-point jump erased the drop seen in April, when US President Donald Trump's tariff hikes sowed turmoil in financial markets and darkened the economic outlook. The jump is the latest evidence of the UK economy's resilience in the face of still-elevated inflation and the lingering risks posed by shifting US trade policies. The economy expanded during the first quarter at the fastest pace in over a year and retail sales are booming, in a positive shift for the Labour government, whose warnings of tax hikes and budget cuts unnerved businesses and consumers late last year. 'The rebound in business confidence suggests that firms might be in a stronger position for the next quarter,' said Hann-Ju Ho, senior economist at Lloyds Commercial Banking. 'The rise in confidence is driven by a sharp increase in economic optimism, reflecting the recovery in financial markets amid the easing of global trade tensions.' The survey, conducted from May 1-16, followed the market rebound that came after Trump paused some of his tariff increases in order to pursue negotiations with trading partners. It also came as the UK on May 8 said it reached the basic outline of a deal with the US that would lower levies on British cars and eliminate them on aluminium and steel, softening the prospective hit to those industries. The Lloyds survey echoes S&P Global's PMI report, which showed that sentiment for the year ahead climbed to the highest in five months in the wake of the UK-US agreement. Most of the rebound came from the services sector, however, while manufacturers continued to report shrinking demand for their exports. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Lloyds' survey also showed that businesses are more upbeat about their own trading prospects and the economic outlook. Confidence among construction businesses climbed to a nine-month high. Sentiment improved across most UK regions, with Northern Ireland, the East Midlands and the South West posting the largest gains. Business inflation expectations also came down in May, thanks to fewer firms planning to push up prices over the next year. The decline reversed April's uptick, when a wide range of cost increases, from food to basic bills, sent the pace of inflation to the highest in over a year. Lloyds' gauge of expected staffing levels rose, suggesting more firms are looking to expand headcount, while the number of employers forecasting pay growth of at least 3 per cent also ticked up. BLOOMBERG
Wales Online
26-05-2025
- Business
- Wales Online
Wales' most expensive and cheapest seaside towns named
Wales' most expensive and cheapest seaside towns named Britain's most expensive seaside locations have been named with house prices under half a million, new research from Lloyds bank has found Bracelet Bay beach in Mumbles provides for the perfect weekend getaway (Image: WalesOnline/Rob Browne ) With its several beautiful beaches that provide ample opportunities, for nice day of relaxation, Mumbles has been named as the most expensive seaside location in the whole of Wales. Analysis by the Lloyds Bank has put forward a list of most expensive seaside locations throughout the UK, and while it is Sandbanks in Dorset that has taken the top spot, there are some Welsh contenders to the title. It is important to note, however, that even though Mumbles is the most expensive coastal town in Wales, average house prices in the area are not even half of what it costs in the most expensive location across the UK, which is Sandbanks. Across the UK, the average cost of a seaside home was £295,991 last year – a 1% decrease compared to 2023, according to Lloyds. The Langland Bay beach in Mumbles is frequent visit for locals (Image: Richard Swingler ) The Lloyds Coastal Homes Review monitored house price trends in 197 coastal areas. Despite the slight dip, prices in coastal towns have risen nearly a fifth (18%) over the five years from 2019, the bank reported. Homebuyers could snap up about nine properties in the most affordable seaside spot listed by Lloyds, with average house prices, for the price of a single home in Sandbanks. Love dreamy Welsh homes? Sign up to our newsletter here Article continues below Lloyds based their research on data from the Land Registry and the Registers of Scotland. The most expensive seaside locations across Wales, with their average house prices, are Mumbles at £417,043 and Prestatyn is the cheapest at £192,331, according to the Llyods Bank. With its golden sands and reputation for luxury living, Sandbanks in Dorset was named as the UK's priciest seaside spot. Those looking to relocate to Sandbanks will typically find little change from £1 million, with the average house price standing at £965,708 last year, according to Lloyds Bank. Locals make full use of the Sandbanks beach in the summer (Image: Andrew Matthews/PA Wire ) Despite a 3% decrease, or £33,595, compared to 2023, Sandbanks still tops Lloyds' coastal property league, which is predominantly made up of locations in the South West of England. Sandbanks is famed for its celebrity residents, high-end dining options and vibrant nightlife. Salcombe in Devon, known for its art galleries and boutique shops, ranks second on Lloyds' list, with an average house price of £826,159 in 2024. Cornwall's culinary haven, Padstow, comes in third, with buyers shelling out an average of £715,974 to reside there and savour the allure of its harbour and seafood offerings daily. Aldeburgh in Suffolk, celebrated for its arts scene and architecture, is fourth, with an average house price of £619,693. Here are the UK's priciest seaside spots, complete with average house prices for 2024:. Sandbanks, South West, £965,708 Salcombe, South West, £826,159 Padstow, South West, £715,974 Aldeburgh, East of England, £619,693 Lymington, South East, £608,253 St Mawes, South West, £552,198 Lyme Regis, South West, £531,815 Budleigh Salterton, South West, £496,998. Dartmouth, South West, £495,643 Kingsbridge, South West, £484,986 Those in search of an affordable seaside abode might consider Campbeltown, located on the picturesque Kintyre Peninsula in Argyll and Bute, which boasts an average house price of £103,078. Newcomers to the area can savour a glass of the local whisky to celebrate their property purchase. Other coastal regions ranking on the more budget-friendly side for property buyers include Rothesay on the Isle of Bute (with an average house price of £111,764), Millport on Great Cumbrae (£114,008), and Port Bannatyne, also on Bute (£115,421). Amanda Bryden, Lloyds' mortgage chief, commented: "Coastal living continues to hold a special appeal – whether it's the lure of sea views, sandy beaches, or a slower pace of life. "Our latest research shows the most exclusive seaside spots – like Sandbanks – still command premium prices. "In some of the UK's most desirable coastal towns, average prices have dipped slightly over the past year. But, over the longer term, values remain significantly higher – especially in the South West, where demand from lifestyle movers continues to shape the market. "At the other end of the scale, there are still pockets of real affordability – particularly in Scotland, where buyers can find coastal homes for a fraction of the price. For those willing to look beyond the traditional hotspots, there are some hidden gems offering great value and a strong sense of community. "It's also important to recognise that not all coastal areas share the same fortunes. Some seaside towns face significant challenges, from seasonal economies to a lack of affordable housing for local people." Here's the roundup of Britain's most affordable seaside locations for 2024, as listed by Lloyds: Campbeltown, Argyll and Bute, Scotland, £103,078. Rothesay, Argyll and Bute, Scotland, £111,764. Millport, North Ayrshire, Scotland, £114,008. Port Bannatyne, Argyll and Bute, Scotland, £115,421. Girvan, South Ayrshire, Scotland, £116,211. Greenock, Inverclyde, Scotland, £117,751. Ardrossan, North Ayrshire Scotland, £124,532. Wick, Highlands, Scotland, £126,708. Stranraer, Dumfries and Galloway, Scotland, £128,888. Saltcoats, North Ayrshire, Scotland, £129,194. Here are the least expensive coastal locations in England and Wales, according to Lloyds, with average house prices in 2024: Newbiggin-by-the-Sea, North East, £132,863. Fleetwood, North West, £146,338. Blackpool, North West, £146,764. Withernsea, Yorkshire and the Humber, £148,402. Maryport, North West, £153,243. Seaham, North East, £157,100. Blyth, North East, £158,265. Hartlepool, North East, £158,271. Cleethorpes, Yorkshire and the Humber, £166,909. Whitehaven, North West, £170,673. Here are the most and least expensive coastal locations in each region or nation, according to Lloyds, with average house prices in 2024: East Midlands Chapel St Leonards, £214,802. Skegness, £202,559. East of England Aldeburgh, £619,693 Lowestoft, £238,372 North East Whitley Bay, £310,918 Newbiggin-by-the-Sea, £132,863 North West Grange-over-Sands, £308,419 Fleetwood, £146,338 Scotland St Andrews, Fife, £458,381. Campbeltown, Argyll and Bute, £103,078. South East Lymington, £608,253 East Cowes, £239,605 South West Sandbanks, £965,708. Plymouth, £248,668. Article continues below Yorkshire and the Humber Whitby/Robin Hood's Bay, £299,161 Withernsea, £148,402
Yahoo
04-05-2025
- Business
- Yahoo
Here's the dividend forecast for Lloyds shares through to 2027!
Banks like Lloyds (LSE:LLOY) are some of the most popular passive income shares out there. Their stable cash flows — generated from interest income, product fees, and investments — give them the means to pay a large and often growing dividend almost every year. What's more, retail banks only have limited growth opportunities. This means they tend to pay a greater proportion of their excess capital out in dividends compared to many other UK shares. This has resulted in a long history of Lloyds shares delivering yields that trump the broader FTSE 100: The only exception to this came in 2020, when the Bank of England demanded UK banks stopped dividends during the height of the pandemic. Yet while this was an anomaly, it also shows that dividends are never, ever guaranteed. So what is the payout forecast like for Lloyds shares over the next few years? Banks are among the most cyclical companies out there. When economic conditions worsen, profits can fall through the floor as revenues dry up and loan impairments shoot higher. This danger is especially high at the moment as Britain's economy stagnates. However, this isn't expected to put an end to Lloyds' progressive dividend policy, as analyst forecasts below show: Year Dividend per share Dividend growth Dividend yield 2025 3.59p 13.2% 4.9% 2026 4.29p 19.5% 5.9% 2027 4.84p 12.8% 6.6% As you can see, the yields on Lloyds' predicted dividends all sail above the FTSE 100 long-term average of 3%-4%. On top of this, predicted double-digit percentage growth is expected to comfortably outpace the impact of inflation. To put this rate of predicted growth into further perspective, dividends across the broader UK share complex are tipped to grow at an average 2% this year. As I say, dividends are never in the bag. But I'm optimistic that Lloyds shares can deliver the cash rewards that City brokers predict. Firstly, expected dividends are covered either 2.1 or 2.2 times by anticipated earnings over the period. This provides a decent margin of safety in case profits are indeed blown off course. Lloyds also has a strong balance sheet it can utilise to pay more market-beating dividends. At the end of 2024, its CET1 capital ratio (a measure of solvency) rang in at 14.2%, well ahead of its targeted minimum of 13%. The bad news is that dividends are only one thing to consider when choosing a stock to buy. So while Lloyds shares could keep delivering a large passive income, these benefits could be offset by an underperforming share price. I'm not just concerned about bank earnings if (as I expect) Britain's economy remains under pressure. Income levels could also disappoint as the Bank of England steadily cuts interest rates, pulling margins lower. Net interest margins (NIMs) were already alarmingly thin at 2.95% in 2024. And while Lloyds has considerable brand power, revenues and margins are under significant threat from growing competition in the banking industry. Finally, Lloyds' share price could take a pummelling if an investigation into motor finance goes against it, causing billions of pounds in financial penalties. Despite its solid dividends forecasts, I would — on balance — rather find other passive income shares to buy right now. The post Here's the dividend forecast for Lloyds shares through to 2027! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
Business Mayor
02-05-2025
- Business
- Business Mayor
Lloyds hails record day of mortgage lending ahead of stamp duty deadline
Unlock the Editor's Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Lloyds Banking Group recorded its biggest-ever day of mortgage lending in March as UK homebuyers rushed to take advantage of a stamp duty holiday before the window closed. The high-street bank on Thursday said it lent to 20,000 first-time buyers in the first three months of the year, and sold a record 5,000 mortgages to buyers completing on March 27. Lloyds' total mortgage book grew by £4.8bn to £317.1bn over the quarter. The rush came days before stamp duty — a tax levied on property purchases — rose back to pre-2022 levels on April 1. The changes mean that first-time buyers will now pay the tax on properties worth £300,000 or more, rather than £425,000 previously, with similar changes for non-first time buyers. Lloyds' chief financial officer William Chalmers said the boost in mortgage lending was likely to subside throughout the rest of the year, as many customers had brought forward planned purchases. 'I'd be surprised if mortgage growth is quite as strong going into quarter two as it was in quarter one because of that bring forward effect,' he said. Homebuyers have also been helped by easing mortgage rates in recent weeks as lenders have cut prices in the wake of US President Donald Trump's tariffs. The average two-year fixed residential mortgage rate was 5.18 per cent on Thursday, according to data provider Moneyfacts, down from 5.2 per cent on Wednesday. '[Mortgage] rates have somewhat come down over the course of recent weeks as the expectation of tariff-induced lowdown in economic projections [has] caused people to think that maybe rates will be reduced faster than previously thought,' said Chalmers. His comments came as data released by the Bank of England on Thursday showed that mortgage approvals fell for a third consecutive month in March, as the rush to beat the stamp duty deadline died down rapidly. Net mortgage lending jumped from £3.3bn in February to £13bn in March. But mortgage approvals for house purchases — reflecting sales that have been agreed but will still take about two months to complete — fell from 65,100 in February to 64,300 in March. Lloyds' first-quarter profits fell 7 per cent year on year to £1.5bn — in line with expectations — as it set aside more money than expected for bad loans in anticipation of the economic impact from US tariffs. Revenues rose 4 per cent year on year to £4.4bn. The bank set aside £309mn for bad loans, higher than analysts' expectations of £279mn, as it added a £35mn provision to account for changes in the economic outlook linked to US tariffs. Lloyds, seen as a bellwether for the UK economy, indicated that overall credit quality remained resilient, with 'stable and benign credit performance in the first quarter'. Chalmers said Lloyds' direct exposure to UK businesses that export to the US represented less than 1 per cent of its total loan book but that executives remained 'vigilant for any potential second order impact' to the UK economy. The bank's net interest margin — the difference between the interest it charges on loans and the rate it pays on customer deposits — rose to 3.03 per cent, from 2.97 per cent in the previous quarter. The boost was driven by so-called structural hedging, which the bank uses to smooth the impact of falling rates on its margins. Lloyds did not make any additional provisions linked to potential liabilities from its motor finance business, having previously set aside more than £1bn to cover the costs of a probe into the potential mis-selling of car loans. The industry is awaiting a Supreme Court decision on whether it was lawful for banks to pay commission to car dealers if customers had not given informed consent for such an arrangement. Lloyds is entering the final stages of a £4bn investment plan to develop new revenue streams that are less closely tied to the interest rate cycle. It has announced 316 branch closures and 500 job cuts so far this year.
Yahoo
01-05-2025
- Automotive
- Yahoo
Lloyds profit falls, sets aside £100m amid tariff uncertainty
Lloyds' (LLOY.L) profits fell in the first quarter, with the bank flagging that it had set aside provisions amid uncertainty over US tariffs. Profits before tax fell 7% year-on-year to £1.52bn ($2bn), according to the first quarter results published on Thursday, which was below consensus estimates of £1.53bn provided by the bank. Net interest income (NII) — the gap between what it pays out to savers and receives from borrowers in interest — was up 5% on the first quarter last year at £3.2bn. This was also just shy of analyst expectations of £3.26bn. Lloyds said it had included "assumptions for expected tariffs and potential responses in its quarter-end base case conditioning assumptions prior to announcements at the start of April. Read more: Barclays profit surges more than expected as investment banking business thrives "Initial non-UK tariffs announced in the first few days of April and the immediate market response were larger than expected," the bank said. "Accordingly, the Group has adopted a £100m central adjustment to reflect the potential ECL [expected credit losses] impact, informed by high level sensitivity to key UK economic metrics based on tariff scenarios." In its fourth quarter results in February, Lloyds said it had set aside a further £700m for potential remediation costs relating to relating to motor finance commission arrangements, taking the total it had put aside to £1.2bn. The motor financing scandal over how consumers have been sold car loans has opened up the possibility that lenders could end up paying out tens of billions of pounds in compensation. In October, the court of appeal ruled it unlawful for dealerships to receive commissions on car finance deals without securing 'fully informed consent' from buyers. Read more: HSBC profits drop less than expected as bank announces share buyback of up to $3bn Lenders Close Brothers (CBG.L) and FirstRand ( have sought to overturn the ruling, and the case headed to the UK's supreme court earlier this month to hear evidence, before it makes judgement on the issue, which is expected in July. The Financial Conduct Authority (FCA), the UK regulator, has said the supreme court's decision would inform its next steps and would confirm if it was proposing a redress scheme within six weeks of the ruling. Lloyds owns motor finance company Black Horse, which is one of the biggest car finance providers in the UK. In its first quarter results, Lloyds said there have been "no further charges relating to motor finance commission arrangements". Read more: How plans to track smaller pension pots could go further to build a lifetime pot UK house prices fall at fastest rate in two years after stamp duty changes What to expect from Mag 7 company earnings in light of Trump tariff turmoil
