Lloyds Bank today posted a pre-tax profit of 1.8 billion pounds ($2.32 billion) in the third quarter, beating analyst forecasts.
Richard Hunter, Head of Markets at interactive investor, commented “Lloyds remains in rude health, as it now accelerates its efficient business model having left behind its previous issues.
“Despite a slip in profits for the period, in the year to date pre-tax profit is above consensus, having risen 10%, and the post-tax number is up 18%. A scan of the metrics reveals progress on any number of fronts. Return on Capital and earnings per share measures are strongly ahead, the capital cushion remains robust and the net interest margin is stable.”
Meanwhile, the cost/income ratio has fallen further to an impressive 47.5% and the bank’s ability to generate cash not only underpins a generous 5.5% dividend yield but also raises the likelihood of future supportive share buybacks. In addition, after the disappointment of the additional PPI provision at the half-year numbers in August, there is no such repeat today. From a strategic perspective, Lloyds continues to tighten its grip in the digital space, whilst the recently announced tie-up with Schroders is an interesting move with lofty ambitions.
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