Lloyds Banking Group

LYG

Market cap $67.1B

Lloyds Banking Group PLC (LSE:LLOY) should unveil a step up in shareholder returns in a year or two, analysts at Jefferies reckon, for investors who "sit tight" as "the magic may soon unfold". Taking inspiration from a 1995 novel turned into a 2006 Hollywood thriller directed by Christopher Nolan, the analysts published a note entitled "The Prestige", where they paraphrased the lines delivered in the film by old magician Michael Caine, that great magic tricks have three parts: the pledge, the turn and the prestige.

The lender said it is now more likely that a higher number of historical cases are eligible for redress and that the level of compensation is above what had been anticipated.

Lloyds Banking Group PLC (LSE:LLOY) told investors that it will make an extra £800 million charge for the motor finance redress scheme, bringing its total provisions to £1.95 billion. The lender questioned the Financial Conduct Authority's proposed methodology, announced a week ago, stating it does not reflect actual customer loss or align with the Supreme Court's judgment in early August.

Britain's Lloyds Banking Group said on Monday it will take an additional charge of 800 million pounds ($1.07 billion), bringing the total impact from the UK motor finance mis-selling scandal to 1.95 billion pounds.

Investors looking for stocks in the Banks - Foreign sector might want to consider either Lloyds (LYG) or Mizuho (MFG). But which of these two stocks presents investors with the better value opportunity right now?

Lloyds Banking Group PLC's (LSE:LLOY) comments that it may have to make "material" extra provisions for a motor finance compensation scheme may send ripples around the industry, analysts at Shore Capital warned.  The FTSE 100-listed lender had already set aside £1.2 billion ahead of the ruling from the Supreme Court in August, which was followed by an initial estimate from Financial Conduct Authority that a redress scheme may cost between £9 billion and £18 billion.

Lloyds Banking Group said on Thursday it would buy out Schroders' 49.9% stake in the wealth joint venture formed by the two firms in 2019.

Lloyds Banking Group PLC (LSE:LLOY) said it may need to set aside "material" extra provisions for motor finance compensation.  Yesterday, the Financial Conduct Authority stated that it expected the costs of a redress scheme to be around £11 billion, comprising an estimated £8.2 billion in compensation and £2.8 billion in costs.

The FTSE 100 Index is in a relentless bull run and is now hovering at its all-time high. It soared to a high of £9,575 on Wednesday, Oct. 8, up by over 26% from its lowest level in April.

Lloyds Banking Group said on Thursday that the Financial Conduct Authority's proposed scheme regarding motor finance mis-selling may require an additional provision, which could be material to the British lender.