Lloyds Banking Group PLC reported a 46% rise in Q1 profit, beating analysts’ expectations due to higher net income in a rising interest rate environment.
The bank’s net income rose 15% YoY to £4.7bn while pre-tax profit improved to £2.26bn from £1.54bn.
Underlying net interest income rose 20% to £3.54bn, driven by a stronger banking net interest margin. Although operating costs increased 5%, the bank’s asset quality remained resilient with an underlying impairment charge of £0.2bn.
Lloyds continues to expect banking net interest margin to be greater than 305bps, with an asset quality ratio of c.30bps and a return on tangible equity of c.13%.
Lloyds Banking Group profit jumps 46%, beating City forecasts
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