Lloyds Banking GAAP EPS of 7.50p; plans buyback and fresh strategy

Feb. 24, 2022 3:19 AM ETLloyds Banking Group plc (LYG)By: Meghavi Singh, SA News Editor4 Comments
  • Lloyds Banking press release (NYSE:LYG): FY GAAP EPS of 7.50p.
  • Underlying profit £8.04B vs. £2.19B Y/Y
  • Statutory pretax profit £6.90B vs. £1.23B Y/Y
  • Net interest income of £9.37B (-13% Y/Y)
  • Total income of £37.44B (+28% Y/Y)
  • Net interest margin 2.54% vs. 2.52% Y/Y
  • CET1 ratio 17.3% vs. 16.2% Y/Y.
  • The Board has also announced its intention to implement an ordinary share buyback of up to £2.0 billion which will commence as soon as is practicable and is expected to be completed by 31 December 2022.
  • Chief Executive Officer Charlie Nunn said, "The bank will focus on catering to “mass affluent” customers, expand digital services for small business clients and grow selectively in its corporate business. Lloyds will invest 4 billion pounds over five years on these goals."
  • Outlook FY22: Banking net interest margin above 260 basis points; Operating costs of £8.8B on the new basis, with the increase from the 2021 equivalent (£8.3 billion); Asset quality ratio to be 20 basis points; Return on tangible equity of 10 per cent and Risk-weighted assets at the end of 2022 to be £210 billion.
  • 2024 and 2026 guidance: Return on tangible equity in excess of 10 per cent by 2024 and in excess of 12 per cent by 2026; additional revenues of £0.7 billion by 2024 and more than double that of £1.5 billion by 2026; Asset quality ratio to be less than 30 basis points over 2022 to 2024; Capital generation of around 150 basis points per annum over 2022 to 2024, improving to 175 to 200 basis points by 2026.

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