Market Update on One Banking Stock – LLOY

Lloyds Banking Group PLC  

Lloyds Banking Group PLC (LSE: LLOY) is an FTSE 100 index-listed UK-based provider of financial services to individual and business customers in the United Kingdom. The Company's main business activities are retail and commercial banking, general insurance, long-term savings, protection, and investment.

Q1 FY23 Interim Management Statement (released on 03 May 2023)

• Improved Statutory Profit After Tax: The company reported higher statutory profit after tax of GBP 1.6 bn in Q1 FY23, ending on 31 March 2023 as compared to GBP 1.1 bn in pcp. This was majorly on account of higher net income which was partially offset by higher operating costs.
• Increasing Net Income and Other Income: The bank reported a jump of approx. 15% in the Net income, which stood at GBP 4.7 bn in Q1 FY23, and other income also rose by 6% to GBP 1.3 bn in Q1 FY23, versus the pcp.
• Decline in loans and Advances and Customer Deposits: The loans and advances declined by GBP 2.6 bn and came down to GBP 452.3 bn whereas the customer desports dipped down by GBP 2.2 bn and stood at GBP 473.1 bn, in Q1FY23. The loan-to-deposit ratio is 96%, which provides robust funding and liquidity to the books.
• FY23 Guidance: The management is confident and expects the Banking net margin to be higher than 305 basis points, whereas the operating costs to be approx. GBP 9.1 bn, return on tangible equity is estimated at around 13%, for FY23.

Share Price Chart

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Lloyds Banking Group PLC (LSE: LLOY) was trading at the closing market price at GBX 45.81 (as of 09 May 2023).

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 09 May 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 4: Dividend Yield may vary as per the stock price movement.

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