Lloyds bumper profits deliver £1bn bonanza for shareholders

  • Lloyds bumper profits deliver £1bn bonanza for shareholders

Lloyds bumper profits deliver £1bn bonanza for shareholders

Antonio Horta Osorio, chief executive of Lloyds Banking Group, said it planned to increase its "financial planning and retirement open book assets by more than £50bn by 2020 with more than one million new pension customers". BidaskClub downgraded shares of Lloyds Banking Group PLC from a "sell" rating to a "strong sell" rating in a research report on Wednesday, August 2nd.

As well as announcing results for 2017, up 11% from £5.79 in 2016. JPMorgan Chase & Co. set a GBX 85 ($1.17) price objective on shares of Lloyds Banking Group and gave the company a "buy" rating in a report on Thursday, February 15th.

Additional PPI provisions of £1.7bn and conduct costs of £865m were taken previous year, with Lloyds saying this figure reflects increased complaint levels, including the impact of the first FCA advertising campaign for the August 2019 industry deadline.

Whether today's strategy update will help to improve long term prospects and see a return to 2017's 73.5p share price highs will be key, but at least in the short term, disguising a profits miss with an attractive offer for investors seeking immediate gratification has proved shrewd.

He added: "We have delivered another year of strong financial performance with improved profit and returns on both a statutory and underlying basis and have now built the largest and top rated digital bank in the United Kingdom". His basic pay rose by £95,000 and there were hikes totalling more than £500,000 in performance bonus and long-term incentives.

The group, which includes pensions provider Scottish Widows, outlined its plans in a three-year strategic plan released this morning.

The net interest margin is a closely-watched profitability measure, as it highlights the difference between interest paid out on savings and the interest charged on loans, and for Lloyds it came in at 2.86% - a touch higher than its previous forecast.

Laith Khalaf, senior analyst at Hargreaves Lansdown, said: "There's a lot to like in Lloyds' numbers, with profits rising, costs under control, and prodigious amounts of cash being thrown off to shareholders".

"With more rate rises waiting in the wings, this looks like a tailwind that's going to be blowing behind Lloyds for the foreseeable future".

The bank stated dividend growth will continue to be a priority, and said it plans to spend up to £1bn on a share buyback, while the dividend increased by 20 per cent.