FX.co ★ Lloyds Banking Q1 Profit Down; Backs FY24 Margin View

On Wednesday, Lloyds Banking Group revealed that their pre-tax profit for the first quarter of the year witnessed a 28% decline, falling from 2.26 billion pounds last year to a current figure of 1.63 billion pounds.

Ordinary shareholders found their attributable profit at a 29% decrease from last year's 1.51 billion pounds, currently standing at 1.07 billion pounds. This has caused an impact on the earnings per share, with a decrease from 2.3 pence last year to 1.7 pence in the current year.

Furthermore, the underlying profit has decreased to 1.76 billion pounds, marking a 21% drop from last year's 2.22 billion pounds. Simultaneously, the underlying profit before impairment also dropped by 26% from last year's value of 2.46 billion pounds to 1.81 billion pounds.

As for other financial metrics, the net income fell by 9% to 4.24 billion pounds from last year's 4.65 billion pounds. Despite this, the total income reflected growth of 22%, reaching 11.32 billion pounds from last year's figure of 9.31 billion pounds. On the contrary, a fall of 11% from last year was recorded in net interest income, at 3.05 billion pounds.

The underlying net interest income was reported at 3.18 billion pounds which shows a decrease of 10% from last year's figure of 3.54 billion pounds. This is correlated with the lower banking net interest margin at an expected value of 2.95%.

As for projections towards 2024, the company remains optimistic, expecting the banking net interest margin to be greater than 290 basis points.