People’s expectations of the economy have reached a new low, while Lloyds profits are hit by new £700m provision in motor finance scandal
Shares in Lloyds have jumped over 2% in early trading, despite this morning’s profits miss.
Investors may be cheered that Lloyds has announced a new £1.7bn share buyback programme, to return excess capital to shareholders.
“Lloyds has capped off a strong year with a clouded fourth-quarter result, setting aside a hefty £700m provision for potential charges related to the ongoing motor finance saga. While you could argue the provision is overly cautious, Lloyds holds the largest exposure of any major UK bank, and the outcome remains uncertain. Despite this, the stock is up over 40% in the past year, reflecting a solid banking outlook and robust performance.
Beneath the surface, Lloyds is delivering strong results. Excluding the motor finance charge, fourth-quarter figures exceeded expectations, thanks to borrowers performing better than anticipated. Remarkably, Lloyds has managed to improve its loan quality over the course of the year, defying fears that borrowers would buckle under the pressure of persistent inflation.
Continue reading…People’s expectations of the economy have reached a new low, while Lloyds profits are hit by new £700m provision in motor finance scandalShares in Lloyds have jumped over 2% in early trading, despite this morning’s profits miss.Investors may be cheered that Lloyds has announced a new £1.7bn share buyback programme, to return excess capital to shareholders.“Lloyds has capped off a strong year with a clouded fourth-quarter result, setting aside a hefty £700m provision for potential charges related to the ongoing motor finance saga. While you could argue the provision is overly cautious, Lloyds holds the largest exposure of any major UK bank, and the outcome remains uncertain. Despite this, the stock is up over 40% in the past year, reflecting a solid banking outlook and robust performance.Beneath the surface, Lloyds is delivering strong results. Excluding the motor finance charge, fourth-quarter figures exceeded expectations, thanks to borrowers performing better than anticipated. Remarkably, Lloyds has managed to improve its loan quality over the course of the year, defying fears that borrowers would buckle under the pressure of persistent inflation. Continue reading…
