Will the UK make a profit on its bank shares?

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Will the UK make a profit on its bank shares?

Postby Ace » Tue Apr 27, 2010 11:57 am

Its interesting to note that Lloyds Bank has anounced that its back in profit. I can't understand how anyone doubted this would happen and still feel that both RBS and Lloyds are good investments for the future. Lloyds is languishing at 70p and RBS around 55p, I feel both are still undervalued. The government is already on a profit with RBS and soon will be with Lloyds which it bought at 73p.

When I bought Lloyds shares a year ago my blended cost (they have had a equity raise since) was 50p a share and as such I've seen a 40% increase in my capital over a year. Not a bad return.

I fully expect to see both Lloyds and RBS go over the £1 per share mark over the next 12 months (subject to actions that a future government might take) This will give the country a fair old return on its investment though many will doubt that it compensates for the bail out it had to put in place.

It was the banks that lead us in to this recession and it will be the banks that will lead us out. Like or loath them the country needs a strong banking sector. Recapitalisation of the banks was a long overdue requirement and more prudent lending and better profitability are certainly two factors that will get it.

Will we get value for money for the country's shares in the banks?
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