Wednesday 4 November 2009

UK Banking Capital Raisings repraised

Have been thinking about yesterdays announcements today - some of my initial figures were wrong for the amounts raised in total; check out below the fund raising by the UK clearing banks in the past 18 months, their valuations and shareprices:

RBS - Raised £62 billion
Current market cap - £20 billion
Current Shareprice - 35p (18 months ago 368p)

Lloyds/HBOS - Raised £35 billion (or in process, includes goodwill from HBOS merger))
Current market cap - £23.46 billion
Current Shareprice 86p (18 months ago was 442p)

Barclays - Raised £7 billion
Current market cap - £38.47 billion
Current Shareprice - 323p (was 453p)

HSBC - Raised £12.5 billion
Current market cap - £117 billion
Current shareprice - 677p (was 850P)

When you consider the market used to think that HSBC and Lloyds were the conservative banks, Barclays in the middle with RBS and HBOS as the most risky; how wrong the sentiment was.


Budgie said...

What you say is very true, except for Lloyds. They were a conservative bank but took over HBoS at Brown's behest, and have suffered the consequences since. And to be fair to HBoS, if they had not been suckered by Brown's "no more boom and Bust" perhaps they would have been a little more agile in diversifying out of the property market. HBoS was no N. Rock. Brown's sticky fingers are all over the UK banking debacle.

CityUnslicker said...

Agree - Lloyds lose their tag when merged with the dreadful HBUST

Steven_L said...

Is there any way of getting data on how market capitalisation has changed as opposed to share price throughout the crisis?

Demetrius said...

Sentiment? In modern banking? For RBS etc. also see my post today.

Tuscan Tony said...

Would love to know whether there's been any realistic marking to market of their residential mortgage portfolios. I'd guess probably not.

Nick Drew said...

isn't mandatory MTM still suspended ?

no-one seems very keen for anything to be properly assessed for the time being, wonder why ...

CityUnslicker said...

Level 3 assets are not marked to market. Check out the difference between the capital raisings at BARC and RBS!

Anonymous said...

TT: "market of their residential mortgage portfolios. "

I doubt it. There was an article a while ago retailing the story that banks were buying up their own defaulted properties at par so as to be able to say, 'look we just paid 2007 prices for that, our portfolio of assets has held up really well'.