Why Lloyds Banking Is Up 55% This Year
The bank, which owns the Lloyds TSB, Halifax, Bank of Scotland and Scottish Widows brands, seems to have impressed investors with a series of resilient statements.
During February Lloyds Banking announced its 2011 results, which showed core profits had improved 3% to 6,349 million pounds. The group said various growth initiatives, cost reductions and "funding mix" improvements had mitigated the effects of a subdued U.K. economy and higher wholesale funding costs.
During May, Lloyds Banking's first-quarter statement revealed profits had dropped by 2% to 1,603 million pounds. However, the group also increased its current-year asset reduction guidance to at least 30 billion pounds from at least 25 billion pounds, and said the target should be reached in 2013 instead of 2014.
Then in July, Lloyds Banking disclosed half-year results that showed profits dropping by 231 million pounds to 2,977 million pounds. However, Antonio Horta-Osorio, the group's chief executive, did say:
"In the remainder of 2012, therefore, we expect a continued resilient underlying business performance and remain on track to meet the 2012 financial guidance we set out in our full-year 2011 results... Moreover, following a better-than-expected performance in the first half, and assuming current economic trends continue, we now anticipate that our 2012 impairment charge will be lower than our previous guidance."
Lloyds Banking's next update will be published on November 1st, which may reveal further news that can impress investors.
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Maynard does not own any share mentioned in this article.
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