Will Lloyds Continue To Downplay Brexit With FY Results?
Spreadex | Feb 13, 2019 11:52
The banking group will be one of many FTSE 100 firms that is pleased 2018 is over. After quickly rushing to an 8 month high of 72.5p late last January, the stock went on a truly dreadful run, one that culminated in a 2 and a half year low of 49.53p by the end of December.
So far 2019 has been kinder to the company. A sharp rise across January has left it bouncing between 57p and 58p throughout the first half of February. Lloyds Banking Group (LON:LLOY) PLC now sits at a current trading price of 58.3p.
Though its third quarter pre-tax profit fell 7% to £1.817 billion, that figure was nevertheless a lot better than the £1.7 billion forecast by analysts. And for the first 9 months of the year its pre-tax profit performance was much stronger, with a 10% increase to £4.93 billion. As for net income, it rose 2% for both Q3 specifically and the 9 months ending 30th September.
Interestingly, unlike peer RBS (LON:RBS), which during the same earnings season revealed it had set aside £100 million for Brexit uncertainty, Lloyds was far more optimistic about the whole situation. Retiring CFO George Culmer said the bank’s ‘continued expectation is for some kind sort of withdrawal agreement going forward’, also stating that 97% of the firm’s business is UK-focused.
Given how things have panned out since that update, investors can perhaps expect a fuller comment on Brexit on Wednesday. Lloyds hasn’t completely sat on its hands, however; in January it secured a banking license for its Berlin subsidiary.
As for the results themselves, investors will be keen to see that Lloyds avoided another drop in pre-tax profit in the fourth quarter after Q3’s plunge, alongside its forecasts for what is likely to be an even more Brexit-dominated financial year.
Lloyds Banking Group PLC(LON:LLOY) has a consensus rating of ‘Buy’ alongside an average target price of 73.88p.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
Get The App
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.