Lloyds Banking Group (LLOY)

Sector:

Banking

Index:

FTSE 100

58.00p
   
  • Change Today:
    -0.45p
  • 52 Week High: 67.25p
  • 52 Week Low: 48.58p
  • Currency: UK Pounds
  • Shares Issued: 70,053m
  • Volume: 12,866,540
  • Market Cap: £40,630m
  • RiskGrade: 151

LLoyds Q3 profit hit by PPI claims

By Michele Maatouk

Date: Thursday 31 Oct 2019

LONDON (ShareCast) - (Sharecast News) - Lloyds Banking Group reported a slump in third-quarter profits on Thursday as it took a £1.8bn hit from payment protection insurance claims.
In the three months to 30 September, statutory pre-tax profit fell to £50m from £1.8bn in the third quarter of last year and from £1.3bn in the second quarter of this year. Analysts had been expecting a pre-tax profit of £163m.

The bank's PPI provision for the quarter was at the top end of its September guidance of between £1.6bn and £1.8bn.

Revenue, meanwhile, declined 6% on the year to £4.2bn, also coming in short of expectations as analysts had pencilled in £4.3bn.

Chief executive Antonio Horta-Osorio said: "In the first nine months of 2019 we have made strong strategic progress and delivered solid financial performance in a challenging external environment. I am disappointed that our statutory result was significantly impacted by the additional PPI charge in the third quarter, driven by an unprecedented level of PPI information requests received in August.

"However, our performance continues to demonstrate the resilience of our customer franchise and business model, the strength of our balance sheet and that our strategy is the right one in this environment."

Lloyds also announced that chief operating officer Juan Colombas plans to retire in July 2020.

Colombas joined the bank in 2011 as chief risk officer. LLoyds said "he played a critical role in helping the group determine its strategy in the wake of the financial crisis and, in particular, the restructuring of its balance sheet to ensure it would move forward with secure foundations".

Succession plans for his current executive responsibilities will be announced in due course, Lloyds said.

At 0950 GMT, the shares were down 2.5% at 56.19p.

Russ Mould, investment director at AJ Bell, said: "The banks must be cursing our habit in the UK of leaving things to the last minute as Lloyds becomes the latest name in the sector to be hit by a wave of late payment protection insurance (PPI) claims ahead of an August deadline. The monster provision for PPI spooked investors on Halloween as it virtually wiped out third quarter profit.

"At least this trend is consistent with its peers and the company's net interest margin - a key measure of profitability and an area of concern for the market - held up better than had been feared. The company also beat forecasts on costs.

"That's where the good news stops; revenue, unaffected by the PPI charge, was below expectations - and the company also took a 'single large corporate charge' which some have speculated could be related to Thomas Cook's collapse.

"Unsurprisingly the company blamed the challenging UK backdrop for the pressure on its income and having rallied on hopes of Brexit resolution, the shares may now drift as we head towards a December election.

"The destiny of Brexit has two big impacts on domestic banks like Lloyds, most obviously on how it affects business and consumer confidence as well the level of bad debts.

"But also in how it influences the future direction of interest rates which are a key determining factor in banks' profitability."







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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Lloyds Market Data

Currency UK Pounds
Share Price 58.00p
Change Today -0.45p
% Change -0.77 %
52 Week High 67.25p
52 Week Low 48.58p
Volume 12,866,540
Shares Issued 70,053m
Market Cap £40,630m
RiskGrade 151

Lloyds Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
94.64% above the market average94.64% above the market average94.64% above the market average94.64% above the market average94.64% above the market average
41.18% below the sector average41.18% below the sector average41.18% below the sector average41.18% below the sector average41.18% below the sector average
Price Trend
12.37% below the market average12.37% below the market average12.37% below the market average12.37% below the market average12.37% below the market average
33.33% above the sector average33.33% above the sector average33.33% above the sector average33.33% above the sector average33.33% above the sector average
Income
82.06% above the market average82.06% above the market average82.06% above the market average82.06% above the market average82.06% above the market average
7.69% above the sector average7.69% above the sector average7.69% above the sector average7.69% above the sector average7.69% above the sector average
Growth
24.11% above the market average24.11% above the market average24.11% above the market average24.11% above the market average24.11% above the market average
Sector averageSector averageSector averageSector averageSector average

What The Brokers Say

Strong Buy 11
Buy 1
Neutral 6
Sell 2
Strong Sell 2
Total 22
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Lloyds Dividends

  Latest Previous
  Interim Final
Ex-Div 08-Aug-19 04-Apr-19
Paid 13-Sep-19 21-May-19
Amount 1.12p 2.14p

Trades for 20-Jan-2020

Time Volume / Share Price
10:13 5,473 @ 58.00p
10:13 11,467 @ 58.00p
10:13 7,684 @ 58.00p
10:13 2,895 @ 58.01p
10:13 19,145 @ 58.01p

Lloyds Key Personnel

Chair Norman Blackwell
COO Juan Colombás

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