Latest news with #Lloyds'
Business News Wales
24-06-2025
- Business
- Business News Wales
Welsh Businesses Say Greater AI Adoption Will Drive Local Growth
The majority of Welsh firms believe AI adoption will be a key growth driver in the country's economy, according to Lloyds' Business Barometer, as many report AI-related increases in productivity and profitability. More than three in five (63%) Welsh businesses believe greater AI adoption will be a major driver of local economic growth. Of the 61% of the country's businesses already using AI, 81% say it has increased their productivity, while 80% say it has improved their profitability. Firms are most commonly using AI platforms to improve efficiency (71%) or to analyse data and make better-informed decisions (36%). Looking ahead, 24% of Welsh businesses plan to invest more in AI over the next year and more than a fifth (22%) plan to create new AI-specific roles. Firms said the desire to use the technology to help grow their client base (39%) and to drive new or further increases in productivity (36%) were the biggest drivers behind their future investment plans. Companies also said that having a better understanding of the technology and its benefits (41%) and instances of their competitors using AI (18%) would help facilitate even more investment. The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide. Samantha Noble, area director for Wales at Lloyds, said: 'Welsh businesses identify AI as an avenue for local growth, which perhaps reflects their own success with it – the overwhelming majority of firms already using the technology have seen higher productivity and profitability. 'Sharing knowledge and experience will be critical to helping more firms start applying it, and ultimately realising the full potential of the technology is realised.'
Yahoo
03-06-2025
- Business
- Yahoo
2 dirt cheap FTSE 100 shares! Which should investors consider in June?
There's no shortage of undervalued FTSE 100 stocks to choose from today. But which of these two banking giants could be the better share to consider as summer kicks off? Let's take a look. Lloyds' (LSE:LLOY) share price has rocketed more than 40% since the start of 2025. Yet concerns over weak economic conditions and multi-billion-pound misconduct charges means it still looks dirt cheap on paper. The bank trades on a forward price-to-earnings growth (PEG) ratio of 0.6. A figure below 1 indicates a share is undervalued. Meanwhile, a 4.4% dividend yield beats the Footsie average by around a percentage point. Hopes over sustained interest rate cuts continue to propel Lloyds' shares higher. Further Bank of England-induced interest rate reductions might help kick-start economic growth, boosting credit demand from businesses and consumers. Its effect could be especially beneficial for homes sales and therefore mortgage uptake, a key area for the company. Lloyds' market share here stands at around 19%. Despite a recent inflationary uptick, I'm confident interest rates will keep falling over the year and into 2026. But this doesn't necessarily mean a 'net win' for the banks. Falling rates are a double-edged sword, as they also weigh on net interest margins (NIMs). This is the difference between what the likes of Lloyds charge borrowers and pay to savers. The Black Horse Bank's margins are already under threat as competition rises across its product lines. I'm also concerned about the prospect of rising impairments as the UK economy struggles. During Q1, the company's underlying impairments soared to £309m from £57m the year before. My biggest fear however, relates to the possibility of crushing penalties if the bank's found guilty of mis-selling car finance. Some believe the £1.2bn it's set aside for such a scenario could be a drop in the ocean. A crisis on the scale of the historical PPI scandal could prove catastrophic for Lloyds' share price along with its dividend. Largely speaking, Asia-focused HSBC (LSE:HSBA) faces the same opportunities and threats as Lloyds right now. While it's not dependent on the UK to drive earnings, it has considerable exposure to China where economic conditions remain tough and is vulnerable to escalating trade wars. However, I think the emerging market bank is a far more attractive proposition to consider. Despite difficulties on the ground, the performance of its core units remain resolute. Underlying revenues and pre-tax profit increased 7% and 11% respectively in the opening quarter. Profits beat forecasts by mid-teen percentages, even though impairments ticked up year on year. Today, HSBC shares trade on a forward price-to-earnings (P/E) ratio of 8.8 times, beating Lloyds' shares (10.9 times) by a healthy margin. The bank's dividend yield is 5.7%, also a healthy distance above its FTSE 100 peer. However, its PEG ratio of 1.3 is less impressive. But, on balance, I think it's the more attractive blue-chip bank to consider today. Its share price is up 11% in 2025 so far and has further scope to rise, driven by surging banking product penetration from current low levels. And unlike Lloyds, it doesn't have a potentially costly motor finance investigation to tackle. Of the two, I much prefer it. The post 2 dirt cheap FTSE 100 shares! Which should investors consider in June? 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 HSBC Holdings is an advertising partner of Motley Fool Money. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended HSBC Holdings and 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 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Times
30-05-2025
- 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
