k8r4u: How long have you got ?
Without a restoration of dividend they are currently 70% above the 52 week low, an average 20% uplift per annum would get them to £3 in just over 10 years. My time line is 5 to 7 years for the transformation, UK government and taxpayers would probably like to accelerate that by taking the legislative cuffs off a little sooner.
The big leap will come when dividend is restored, investment funds will realise they are hopelessly light on Financials and when the market comprehends that of all the UK banks Lloyds are the least impacted of trying to split casino from retail. A return to say a 10p div at a 3.5% return would suggest a value of £2.85.
There are risks but the the bank has gone from £9.7bn of net assets in 2008 to £46bn in 2011 so the foundations are a magnitude stronger.