Shares in Lloyds Banking Group (LLOY.L) is up 3.5 percent, outperforming their banking peers, after Nomura upgrades the lender to "buy" from "reduce".
Nomura says in a note its recommendation reflects Lloyds current underlying operating cash flow ex-credit losses on Asset Protection Scheme assets. It says the group's underlying pre-impairement profits would equate to earnings per share of 18 pence plus 2p from targeted cost savings using a normalised credit cost.
"We believe the group's TBVPS (tangible book value per share) has among the least downside risks of major banks, after the first loss piece is exhausted," Nomura says.
Peers Barclays (BARC.L), HSBC (HSBA.L) and Standard Chartered (STAN.L) are down between 0.1 and 1.5 percent, while Royal Bank of Scotland (RBS.L) is up 1.8 percent.
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