Lloyds 3Q Beat Views on Pretax Profit, Net Income, Impairments -- Update
29 Outubro 2020 - 6:36AM
Dow Jones News
--Lloyds Banking Group posted a significant rise in pretax
profit for the third quarter
--The U.K. bank reported lower than expected impairments in the
period and slightly better net income
--Lloyds shares rose after the results
By Sabela Ojea
Lloyds Banking Group PLC reported Thursday a significant rise in
profit for the third quarter of the year, beating market views on
net income and impairments for the period.
The U.K.'s largest retail bank posted a pretax profit of 1.04
billion pounds ($1.35 billion) for the third quarter compared with
GBP50 million for the same period a year earlier, when it booked a
GBP1.80 billion provision. The lender posted a pretax loss of
GBP676 million in the second quarter of the year.
It took an impairment charge of GBP301 million, down from the
GBP2.39 billion and GBP1.43 billion impairments it booked in the
second quarter and first quarter of the year respectively due to
the coronavirus pandemic.
Pretax profit had been expected to amount to GBP588 million,
while impairments were anticipated to reach GBP721 million,
according to the bank's own compilation of forecasts. The bank now
expects to book an impairment charge for the full year at the lower
end of the GBP4.5 billion to GBP5.5 billion range.
Chief Executive Antonio Horta-Osorio said the bank was seeing an
encouraging business recovery, although the coronavirus pandemic
continued to affect its results.
The FTSE 100 bank's net income fell to GBP3.40 billion compared
with GBP4.19 billion for the same period a year earlier. It was
expected to fall to GBP3.37 billion.
Lloyds' common equity Tier 1 capital ratio --a measure of a
bank's financial strength-- stood at 15.2%, up from 13.8% as at
Dec. 31, 2019. It was anticipated to reach 14.4%.
Costs of GBP1.94 billion were higher than market expectations of
GBP1.91 billion, according to the bank's consensus.
Regarding its mortgage book lending, Lloyds said that it
increased by GBP3.5 billion in the quarter thanks to the market
recovery and new business.
However, it also said that its closed mortgage book continued to
reduce, as expected, with credit card and motor finance balances
also lower, mainly due to reduced customer activity in the second
quarter.
Shares at 0853 GMT were up 0.82 pence, or 3.0%, at 28.48
pence.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
October 29, 2020 05:21 ET (09:21 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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