- Lloyds’ statutory pretax profit for the third quarter was £1.82 billion, surpassing the estimate of £1.65 billion.
- The underlying profit was recorded at £1.85 billion, compared to the expected £1.69 billion.
- Return on tangible equity reached 15.2%.
- Net interest income stood at £3.23 billion, meeting expectations.
- Net interest margin was 2.95%, slightly above the projected 2.94%.
- Operating costs were £2.29 billion, in line with estimates.
- The cost to income ratio was slightly above estimates, at 53.4% versus 53.3% expected.
- Lloyds forecasts risk-weighted assets to remain between £220 billion and £225 billion, close to the estimated £223.46 billion.
- The company reiterates continued progress on strategy and expects to achieve higher sustainable returns.
- Lloyds anticipates the banking net interest margin in 2024 to exceed 290 basis points.
- Average interest-earning banking assets in 2024 are expected to be over £450 billion.
- The Group projects an increase of over £0.7 billion in sterling structural hedge earnings in 2024 compared to 2023.
- Operating costs for 2024 are projected to be approximately £9.4 billion, which includes about £0.1 billion for the new Bank of England Levy.
- Analyst recommendations include 8 buy ratings, 12 hold ratings, and 3 sell ratings.
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
Lloyds Banking Group plc, a leading financial institution providing various banking and financial services, has been assessed using Smartkarma Smart Scores to evaluate its long-term outlook. With strong scores in Value (4), Dividend (4), Growth (5), and Momentum (4), Lloyds Banking shows promise in terms of its financial performance and market positioning. These high scores indicate that the company is perceived favorably in areas such as undervaluation, dividend yield, growth potential, and market momentum, reflecting positively on its future prospects.
However, the score for Resilience is lower at 2, implying some level of vulnerability or risk within the company. Despite this, the overall positive outlook portrayed by the Smart Scores suggests that Lloyds Banking is well-positioned to thrive and deliver value to its stakeholders over the long term. Investors may find Lloyds Banking an attractive option based on its solid fundamentals and growth potential in the banking and financial services sector.
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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