Company Reports

Lloyds is a UK banking pure play, with virtually all of its assets based domestically. The bank operates a strong retail franchise, resulting in a market-leading low-cost deposit base. Its focus on mortgages, credit cards, and motor finance drives a high reliance on interest income and developments of base rates and swap rates in the UK. That said, Lloyds is building its fee-based income streams through its insurance and pension offerings and putting more weight behind its transaction banking solutions in its corporate banking segment.

Lloyds reported first-half underlying profits of GBP 4.2 billion, up 18% versus last year. Solid income momentum in both interest and noninterest income, paired with flat operating expenses, created a positive operating leverage effect.

SpaceX has filed for one of the largest IPOs in history, with Anthropic and OpenAI expected to follow in the most significant fundraising cycle in years. No European bank holds a lead equity arranger role; that honor belongs to five US banks.

Lloyds Banking Group reported a good first quarter, with net income up 9% and costs down 3%. The bank also booked a GBP 295 million provision, part of which was related to the conflict in the Middle East and the resulting more cautious outlook for the UK economy.

European banks have declined around 10% from their highs as rising oil and gas prices and the prospect of higher-for-longer interest rates fuel fears that loan defaults will rise.

Lloyds reported fourth-quarter results, closing a decent year despite the motor finance probe provisions. Guidance for 2026 and the structural hedge outlook is strong.

Lloyds is a UK banking pure play, with nearly all of its assets based domestically. The bank operates a strong retail franchise, resulting in a market-leading low-cost deposit base. Its focus on mortgages, credit cards, and motor finance drives a high reliance on interest income and developments of base rates and swap rates in the UK. That said, Lloyds is building its fee-based income streams through its insurance and pension offerings and putting more weight behind its transaction banking solutions in its corporate banking segment.

Lloyds lifted underlying profitability guidance for 2025 on lower expected loan losses and higher net interest income to return on tangible equity of about 14% from about 13.5% previously. A GBP 800 million provision related to the UK motor finance probe tempered 2025 return expectations slightly.

The UK Supreme Court overturned a Court of Appeal decision related to the motor finance probe, ruling that motor dealers acting as credit brokers do not owe fiduciary duties to their customers.

Lloyds is a pure UK banking play, with nearly all of its assets based domestically. Since its massive restructuring, which started in 2011, the bank has emerged as a low-risk domestic retail and commercial bank. It has shed about GBP 190 billion in runoff assets and GBP 200 billion in risk-weighted assets and has significantly reduced its dependence on wholesale funding. Today, Lloyds operates one of the strongest retail franchises in the United Kingdom.

Lloyds reported second-quarter underlying profits of GBP 2.029 billion versus GBP 1.754 billion consensus expectations collected by the bank. Operating expenses and loan losses came in below expectations. Income generation was good, with other income outpacing net interest income.

Lloyds reported underlying profits of GBP 1.53 billion for the first quarter of 2025, down 13% versus the same period a year ago. Higher loan losses this year, driven by a GBP 100 million overlay charge to cover potential tariff-induced risks, drove the divergence in performance versus last year. However, loan losses of 27 basis points was decent. Last year, the bank also booked reversals in its commercial banking unit, which made for a difficult comparative base. Lloyds continues to guide for a 25-basis-point loan loss ratio for the year.

Investors dumped European banks for a second day on April 4 as concern over US tariffs spreads. The 22 banks we cover declined by 11% over the last two days. UniCredit (minus 16%) and Barclays (minus 15%) led the decline, while Svenska Handelsbanken and Credit Agricole fared better, each down 7%.

Lloyds reported 2024 underlying profits of GBP 6.3 billion, below the GBP 6.7 billion consensus estimate collected by the bank prior to the release. The bank booked another GBP 700 million provision related to the motor finance probe currently with the Supreme Court. This drove the majority of the consensus miss, with operating performance in line with expectations. We maintain our GBX 78/$3.90 fair value estimate.

Narrow-moat Lloyds reported third-quarter underlying profits of GBP 1,853 million, up 6% on a sequential basis and 11% ahead of company-compiled consensus estimates. Better income performance across interest and noninterest-related businesses and lower impairment charges versus consensus expectations drove the good quarterly results. We maintain our GBX 78 per-share fair value estimate.

Lloyds posted a good second quarter, slightly ahead of company-compiled consensus expectations. Net interest margin declined marginally to 293 basis points from 295 basis points a quarter ago on weaker lending margins driven by competition as well as deposit mix shifts. We are yet to see what deposit mix shift dynamics peers will have in the quarter, but the dynamics were well within what we have seen over recent quarters already. In the second half of the year, the structural hedge should begin to outweigh these headwind dynamics. Mortgage demand was good with further growth flagged for the second half of the year. Other income continued its good progression from the first quarter of the year, supported by a larger fleet in motor, higher client activity in commercial, and a good trading performance in insurance and pensions. Operating costs were 2% higher than consensus. Lloyds will have to keep its focus on costs in the second half of the year. Guidance on operating costs was unchanged; however, we believe that its investment story is centered on its ability to drive costs back below 50% of income. Any chances that guidance will not be met or will have to be adjusted upward could support negative sentiment around the stock. We maintain our GBX 78 per-share fair value estimate and narrow moat rating.

Lloyds is a pure UK banking play, with 95% of its assets based domestically. Since its massive restructuring, which started in 2011, the bank has emerged as a low-risk domestic retail and commercial bank. It has shed about GBP 190 billion in runoff assets and GBP 200 billion in risk-weighted assets and has significantly reduced its dependence on wholesale funding. Today, Lloyds operates one of the strongest retail franchises in the United Kingdom.

Lloyds reported first-quarter underlying profits of GBP 1.757 billion, slightly ahead of the GBP 1.746 billion consensus collected by Lloyds prior to the release. Net interest income declined 10% as the bank’s net interest margin continued to drift to 295 basis points from 322 basis points a year ago. Positively, the retail deposit outflow has stopped as current and savings account balances increased marginally. As such, headwinds on NIMs are waning, supporting Lloyds’ 2024 guidance of NIM above 290 basis points. Operating costs increased 11% due to higher severance charges as well as a higher levy by the Bank of England. Asset quality was within expectations at 23 basis points excluding reversals. Lloyds also called out improving default rates, which is a positive sign for the bank’s credit quality outlook. We maintain our GBX 77 per-share fair value estimate and narrow moat rating.

Lloyds reported fourth-quarter 2023 results in line with expectations. Net income decreased to GBP 4.232 billion on an underlying basis from GBP 4.514 billion last quarter, while operating expenses increased to GBP 2.486 billion from GBP 2.241 billion. Net interest income declined 4% on a lower banking net interest margin of 298 basis points (308 basis points last quarter), driven by deposit and mortgage margin pressure. Positively, the shift in deposits is showing signs of slowing, similar to what U.K. peers have posted this earnings season. A GBP 450 million remediation charge Lloyds took after a Financial Conduct Authority review into potential motor financing mis-selling was unexpected. The bank highlighted that it still sees material uncertainty around the actual remediation necessary in this matter, if any. We maintain our fair value estimate of GBX 77 per share and narrow moat rating.

Lloyds is a pure U.K. banking play, with 95% of its assets based domestically. Since its massive restructuring, which started in 2011, the bank has emerged as a low-risk domestic retail and commercial bank. It has shed about GBP 190 billion in runoff assets and GBP 200 billion in risk-weighted assets and has significantly reduced its dependence on wholesale funding. Today, Lloyds operates one of the strongest retail franchises in the United Kingdom.