Lloyds reported third quarter net income of £4.6bn, up 7% year-on-year. Within that, both interest income and other income were higher than last year. Banking net interest margin was up from 2.95% to 3.06%.
Underlying profit fell 30% to £1.3bn (£1.1bn expected ), mainly due to an expected £800mn motor finance charge. Non-performing loans remain at low levels.
The group’s CET1 ratio, a key measure of financial strength, is 13.8% (target minimum = 13.0%).
Full year underlying net interest income is now expected around £13.6bn (previously £13.5bn).
The shares were broadly flat in early trading.
Our view
HL view to follow.
Lloyds key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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