Lloyds Banking Group LSE: LLOY NYSE: LYG

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Investing.com - Lloyds Banking (NYSE:LYG) ADR reported on Thursday fourth quarter earnings that missed analysts' forecasts and revenue that topped expectations.

Lloyds (LON:LLOY) Banking ADR announced earnings per share of £0.0709 on revenue of £5.59B. Analysts polled by Investing.com anticipated EPS of £0.071 on revenue of £5.36B.

Lloyds Banking ADR shares are up 9.8% from the beginning of the year, still down 6.67% from its 52 week high of £3.00 set on January 14. They are outperforming the EUR/USD which is down 0% from the start of the year.

Lloyds Banking ADR follows other major Financial sector earnings this month
Lloyds Banking ADR's report follows an earnings beat by Commerzbank AG PK on February 16, who reported EPS of £0.126 on revenue of £2.39B, compared to forecasts EPS of £0.1107 on revenue of £2.12B.

Blackstone Group had beat expectations on January 27 with fourth quarter EPS of £1.71 on revenue of £4.46B, compared to forecast for EPS of £1.4 on revenue of £3.34B.

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LONDON (Reuters) - Lloyds Banking Group (LON:LLOY) reported better-than-expected first quarter profits on Wednesday, as Britain's largest mortgage lender largely shrugged off the early impact of the country's worsening cost of living crisis.

The bellwether bank also raised forecasts of its performance, in a sign of confidence despite the looming threat of runaway inflation and a worsening economic outlook fueled by the shockwaves of war in Ukraine.

Lloyds' pretax profits of 1.6 billion pounds ($2.01 billion) fell from 1.9 billion a year earlier, but were above a 1.4 billion pound forecast from analysts compiled by the bank.

Banks' prospects were lifted last year by the country's rebound from COVID-19 pandemic lockdowns and the Bank of England ratcheting up interest rates from historic lows.

Economists are predicting Britain's cost of living crisis will severely hamper growth, although they expect the central bank to nonetheless raise rates for a fourth straight time next week.

"We are very aware of the potential impact of higher inflation on some of our customers," CFO William Chalmers told reporters, adding the bank was proactively contacting those who may face financial difficulties.

More than 1.2 million of the bank's customers have cancelled subscription services since last summer, Chalmers added, while more money was being spent on energy bills and food.

Chalmers warned impairments for bad loans would likely increase this year from a low base, with the bank taking a 177 million pound charge in the quarter partly due to the expected slowdown.

Lloyds shares rose as much as 3%.

CAPITAL HIT

Lloyds said its underlying performance meant it could increase its forecast for return on tangible equity and net interest margin, key measures of profitability.

Lloyds now expects banking net interest margin to be 270 basis points this year, up from 260 basis points, and to make a return greater than 11%, compared with a 10% target outlined in February.

The lender's results follow those of rival HSBC, which was forced to shelve plans for new stock buybacks in its earnings on Tuesday.

Like HSBC, Lloyds' core capital ratio - a measure of financial strength - fell significantly.

Lloyds' buffer dropped to 14.2% from 16.3% in 2021, which the bank blamed on regulatory changes including an increase in how banks calculate risk-weighted assets and harsher deductions in value for intangible software assets.

Chalmers downplayed the potential impact of the capital hit on future investor payouts, adding that aside from one-offs capital increased 50 basis points in the quarter.

The bank's new CEO Charlie Nunn unveiled a refreshed strategy for the lender in February, targeted at digitising the bank and boosting fee income in areas including wealth management.

The former HSBC executive began a shake-up of Lloyds' top team and internal structure last month and has further trimmed the bank's branch network to curb costs.

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LONDON (Reuters) - The trillion-dollar retail investment express is losing steam, dampening the fortunes of British trading platforms that boomed during lockdowns on the back of a meme stocks frenzy.

Many stock-pickers are steering clear of a turbulent market as living costs rise and the economy teeters, squeezing the business of consumer investment platforms that are facing falling fees and thinning margins.

Even the biggest fish, such as FTSE-listed Hargreaves Lansdown (LON:HRGV) and AJ Bell and those owned or recently acquired by major banks and asset managers, are struggling with wilting flows of new customers and money.

Britain's biggest bank Lloyds (LON:LLOY) told Reuters in an interview last month that inflows to its retail investment platforms - which boast 19.5 billion pounds ($24.2 billion) of customer funds - slowed in the first quarter of 2022 versus a year before, and more clients were selling than buying stocks.

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LONDON (Reuters) - Britain's biggest domestic lender Lloyds Banking Group (LON:LLOY) contacted 2 million of its 26 million customers in May after identifying they could need extra support to cope with soaring food and energy prices and rising debt costs.

The UK's largest mortgage provider outlined options including debt consolidation, household budget reviews and spending control tools to customers it felt could be caught in the crosshairs of an escalating cost of living crisis, a spokesperson told Reuters.

The outreach to 1 in 13 of Lloyds' borrowers and account-holders by phone, email and text messages coincided with UK inflation hitting a 40-year high and offers insight into how banks are seeking to tackle financial woes before they spiral.

Lloyds said it was unable to provide a figure for June, adding it regularly contacted potentially vulnerable customers on a large scale.

During the COVID-19 pandemic, Lloyds arranged debt repayment holidays for 1.3 million borrowers as part of a coordinated forbearance drive by lenders, regulators and the government.

Lloyds' move to get ahead of an economic slowdown may spark alarm among policymakers, given the bank's standing as a bellwether for the UK economy.

"All banks must be worried about when and how this crisis will impact asset quality. Why would you contact 2 million customers in this way if you had no such concerns?," said Roger Gewolb, founder of lobby group the Campaign for Fair Finance, who also called on banks to step up affordability checks on new borrowing.

The Bank of England warned last week the economic outlook for Britain and the world had darkened and lenders needed to bolster capital buffers to better weather the storm.

So far, banks have insisted that loan books are showing few signs of stress. Analysts at Credit Suisse said they expected Lloyds to report second quarter loan loss provisions of 170 million pounds, broadly flat on the previous quarter.

Lloyds CEO Charlie Nunn told the BBC last week that most of its customers had less than 500 pounds in savings - potentially exposing them to financial shocks - even though half of its customers had increased their balances through the pandemic.

Concern about the rising cost of living was reflected in the bank's decision to hand a 1,000 pound one-off payment to the majority of its staff last month.

Charity StepChange reported a 12% month-on-month increase in new clients seeking debt advice to 14,000 in May and said the cost of living was now the second most commonly cited reason.

One-in-six households in Britain are in "serious financial difficulties", research published this week by abrdn Financial Fairness Trust and the University of Bristol showed, from 1-in-10 in October.

Lukasz Krebel, economist at the New Economics Foundation, said he welcomed moves by lenders to advise customers on how to restructure debts or avoid unexpected charges but such support would only help "at the margin".

"Better budgeting offers only an illusory solution for individuals and families whose real incomes have fallen below what they need for basic necessities," he said.

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LONDON (Reuters) - Britain's biggest domestic bank Lloyds (LON:LLOY) has hired ING's technology chief to run its operations, Lloyds said on Thursday.

Ron van Kemenade will join Lloyds as group chief operating officer in June next year, the British bank said.

Van Kemenade will be charged with helping Lloyds CEO Charlie Nunn deliver his strategy to digitise the bank and boost fee income in areas including wealth management.

Nunn - who joined Lloyds from HSBC last year - announced a shake-up of the lender's top team and internal structure in March this year to implement the plan.

Van Kemenade will take over from interim COO David Oldfield, who Lloyds has previously said plans to leave next year. The move is subject to regulatory approval.

ING said the process of identifying a successor to van Kemenade as chief technology officer had started.

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Lloyds (LON:LLOY) stock fell 2% despite the U.K. lender raising its 2023 guidance and dividend, stating it will buy back £2 billion of stock (£1 = $1.2102).

The bank also took a £465M charge in the final quarter of the year to cover loans that could default. This resulted in provisions against credit losses totaling over £1.5B for the whole of 2022 - a sharp contrast to 2021, when it had been able to release a net £1.38B in pandemic-era reserves.

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Lloyds Banking Group today revealed unchanged annual profits of £6.9 billion as the lender benefited from a year of rising interest rates.

Chief executive Charlie Nunn called it a robust performance as he declared a 20% increase in the total dividend to 2.40p a share, alongside plans for a shares buyback worth up to £2 billion.

The bank also expects house prices to fall 7% this year.

https://www.standard.co.uk/business/fts ... ost-428496

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20.02.2023

In this article we will look at the performance of the banking FTSE 100 stalwart, Lloyds.

Lloyds has a market capitalisation of £32.34 billion, but its shares have underperformed the wider FTSE 100 market. If we go back 5 years, the shares were trading at 67.13p and today they are changing hands at 50.91p, which is a decrease of 28.53%.

chart 06.2018-01.2023


When we look at the year-to-date performance, this is recorded at 8.04%, a rise of 3.79p. The stock does carry a decent dividend yield of around 4%, and whilst this is slightly above the FTSE 100 average, there are much high yielding stocks available. An investment of £5,000 would still yield about £200 annually in dividends.

Lloyds is a somewhat boring stock, it’s share price does nothing fantastic, but it is still a good stock to hold. Many pension and investment providers will hold this stock and we could see some gains over the coming years, surpassing the February 2018 share price and continuing to move upwards.

I currently hold this stock, I would consider adding to it over time, but for now I am happy to sit on the income potential.

https://ftsedividends.co.uk/index.php/2 ... rformance/

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Lloyd's of London swings to 2022 pre-tax loss

FRANKFURT (Reuters) - Lloyd's of London swung to a pre-tax loss in 2022 and took writedowns on its fixed-income investments, it said on Thursday.

The pre-tax loss was 800 million pounds ($982.56 million), compared with a profit of 2.3 billion pounds a year earlier.

Rising interest rates have hit investments at many financial firms, and it posted a net investment loss of 3.1 billion pounds, compared with a 900 million pound profit in 2021.

However, Lloyd's underwriting profit jumped 53% to 2.6 billion pounds. Higher premium rates have helped insurers' underwriting profits in recent years.

John Neal, CEO of Lloyd's, forecast 2023 premiums of 56 billion pounds, up from 46.7 billion in 2022, according to a statement.

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Lloyd’s of London plunged to an £800 million loss for 2022 it revealed today after big payouts relating to the war in Ukraine and Hurricane Ian in the US came alongside a drop in the value of its investment portfolio.

The annual loss before tax followed a profit of £1.7 billion a year earlier. Lloyd’s put liabilities from the war at £1.4 billion.

Hurricane Ian, which hit Florida in September, was “the costliest weather event of the year”. Previous estimates of payouts for the storm were put at between $2.3 billion (£1.9 billion) and $3 billion by Lloyd’s. Major claims for 2022 were £4.1 billion in total, up from £2.9 billion in 2021.

A strong showing in Lloyd’s core business — where gross written premiums rose by £7.5 billion to £46.7 billion — meant the overall loss was driven by a drop in the value of its investment portfolio of £3.1 billion, largely from the stockpile of Government bonds Lloyd’s holds, which it sells when it needs to make payouts.

Chief executive of Lloyd’s John Neal told the Standard that the accounting rules that require insurers to report large swings in the value of their bond holdings were “weird” today, adding: “The idea money has been lost is rubbish.”

Great change is possible even in a big organisation like the Met
“We’ve not sold anything, we’re holding [the bonds] to maturity and obviously, their yield is going up — so this year you’ll see unrealised gains, “he said. “That £3 billion comes back in 2023/2024/2025.”

As central banks have been lifting interest rates, demand for Government bonds has fallen, knocking the value of the assets, which are widely owned throughout the financial system. The unrealised losses have bedevilled the sector, adding to stress at already troubled banks such as Credit Suisse and Silicon Valley Bank.

London insurers are big holders of bonds, because they are generally safe investments that are usually easy to sell to raise cash for payouts. Neal pointed out that over a longer time frame, rising yields meant the value of bonds over the whole period that they were being held was greater, even though rules require a snapshot of temporary asset values to affect results.

“There are moments in time when on an accounting basis you have to realise the position. The ‘nonsense’ of this for us comes in 2022, when we’ve got our best underwriting results since 2006 and yet we’re showing a loss,” he said. “It’s hard work for the average man in the street to think ‘what on earth is going on?’”

Lloyd’s made a profit of £2.6 billion from its underwriting business, up from £1.7 billion.

Its core market continued to grow, with companies prepared to increase spending on increased perception of risks, highlighted in part by the invasion of Ukraine and concern at the impact of climate change.

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Lloyds edged lower as it became the latest UK lender to beat quarterly profit forecasts as earnings surged on the back of higher interest rates, although deposits fell sharply. The bank posted first-quarter pre-tax profit of £2.26bn, up 46% and better than the £1.95bn average of analyst forecasts. Net income, generated after deposit payouts, rose 15% to £4.7bn.

Customer deposits fell by £2.2bn to £473.1bn, including a reduction in retail current account balances of £3.5bn, partly driven by seasonal customer outflows, including tax payments, higher spend and a more competitive market, Lloyds said.

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Lloyds was under the cosh after a downgrade to 'underweight' from 'neutral' at JPMorgan.

jpmmini jpma jpms

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Lloyds Banking Group shares have risen 3% or 1.1p to 44.5p and NatWest is up 1% after the UK lenders passed the Bank of England’s annual stress test.

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Na rynkach akcji Lloyds był w odwrocie, pomimo odnotowania ogromnych zysków okresowych i podniesienia prognozy marży odsetkowej netto, podczas gdy oszczędzający wciąż szukali przyzwoitego zwrotu z depozytów.

Analityk CMC Markets, Michael Hewson, powiedział: "Pomimo tej bardziej pozytywnej perspektywy, akcje spadły po tym, jak zyski nie spełniły oczekiwań.

"Ten spadek zysków wydaje się wynikać ze wzrostu rezerw na kredyty zagrożone, które wyniosły 419 mln GBP, oraz spadku NIM w II kwartale do 2,3% z 14,3% w I kwartale".