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Lloyds Banking Group surprise market with upbeat trading statement
Lloyds Banking Group, Britain's biggest retail bank, has surprised the market this morning by putting out an upbeat trading statement ahead of a presentation next week by CEO Eric Daniels to investors at the Morgan Stanley European Financials Conference.
In the first 10 weeks of 2010, LBG's trading performance has been strong and they are pleased with LBG's performance against each area of recent guidance. The banking net interest margin is trending in line with recent guidance and this has supported a good level of income growth, on a combined businesses basis and excluding last year's gains from liability management transactions.
Costs have remained well controlled and are lower than the equivalent period in 2009. Impairment provisions are currently trending at lower levels than anticipated and as a result LBG now expects to deliver a better impairment performance than previously guided, in both the retail and corporate businesses, in 2010. Overall, based on LBG's current economic and regulatory assumptions which remain unchanged since our recent 2009 preliminary results announcement, LBG believes that it will be profitable on a combined businesses basis in 2010.
That represents a surprising improvement in fortunes for LBG, but after a loss of £6.3 billion pounds last year following a 61% jump in bad loans, investors were looking for good news. LBG is now 41% owned by the state after receiving a series of bailouts in the wake of the 2008 banking crisis.
Lloyds shares closed at 55.5 pence on Thursday, valuing the company at about £38.4 billion.
In the first 10 weeks of 2010, LBG's trading performance has been strong and they are pleased with LBG's performance against each area of recent guidance. The banking net interest margin is trending in line with recent guidance and this has supported a good level of income growth, on a combined businesses basis and excluding last year's gains from liability management transactions.
Costs have remained well controlled and are lower than the equivalent period in 2009. Impairment provisions are currently trending at lower levels than anticipated and as a result LBG now expects to deliver a better impairment performance than previously guided, in both the retail and corporate businesses, in 2010. Overall, based on LBG's current economic and regulatory assumptions which remain unchanged since our recent 2009 preliminary results announcement, LBG believes that it will be profitable on a combined businesses basis in 2010.
That represents a surprising improvement in fortunes for LBG, but after a loss of £6.3 billion pounds last year following a 61% jump in bad loans, investors were looking for good news. LBG is now 41% owned by the state after receiving a series of bailouts in the wake of the 2008 banking crisis.
Lloyds shares closed at 55.5 pence on Thursday, valuing the company at about £38.4 billion.
Fri, 19th Mar 2010