- Lloyds Bank’s 1Q statutory pretax profit outperformed estimates, reaching GBP1.63 billion compared to the expected GBP1.54 billion.
- The underlying profit also surpassed expectations, with a realisation of GBP1.76 billion against a GBP1.63 billion estimate.
- Although the net interest income fell slightly short of the estimated GBP3.21 billion, it was a close fit at GBP3.18 billion.
- The net interest margin rose by a notch, clocking in at 2.95% compared to the predicted 2.94%.
- Return on tangible equity for the bank was a sturdy +13.3% over the designated period.
- Operating costs were higher than expected at GBP2.40 billion, instead of the projected GBP2.33 billion.
- The Cost to Income Ratio for the institution was fixed at 57.2%.
- The bank anticipates a moderate reduction in the notional balance throughout 2024, including the decrease observed in the first quarter.
- Sterling structural hedge earnings in 2024 are expected to be around £0.7 billion higher than in 2023.
- The bank’s expectations for the banking net interest margin for 2024 is to surpass 290 basis points.
- Average interest-earning banking assets in 2024 are projected to exceed £ 450 billion.
- Analysts have shown mixed reactions towards the bank’s performance and future prospects, with 11 buys, 6 holds, and 4 sells.
A look at Lloyds Banking Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have assessed Lloyds Banking using their innovative Smart Scores system to gauge the bank’s long-term potential. With high scores in Value, Dividend, Growth, and Momentum, Lloyds Banking appears to be on a solid footing. The bank’s strong emphasis on growth and attractive dividend offerings could signal positive prospects for investors looking for stable returns.
However, Lloyds Banking‘s lower score in Resilience raises a cautious note. This could indicate some vulnerability to economic downturns or market fluctuations. Despite this, the overall outlook for Lloyds Banking seems promising, with its diverse range of financial services and strategic positioning within the industry.
Summary of the company: Lloyds Banking Group plc, through subsidiaries and associated companies, offers a range of banking and financial services. The Company provides retail banking, mortgages, pensions, asset management, insurance services, corporate banking, and treasury services.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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