Lloyds Banking Lifts 2023 Interest Margin, Returns Guidance; 2Q Pretax Profit Missed Views

   By Elena Vardon 
 

Lloyds Banking Group on Wednesday posted pretax profit for the second quarter of 2023 below expectations but lifted some of its guidance for the year.

The British bank posted a pretax profit for the three months to June 30 of 1.61 billion pounds ($2.08 billion) compared with GBP1.54 billion restated for the same period a year earlier and with GBP1.72 billion expected by a company-compiled consensus.

The FTSE 100 listed group's net income rose to GBP4.53 billion from a restated GBP4.03 billion, beating a consensus estimate of GBP4.51 billion. Its banking net interest margin was 3.14% for the quarter, while consensus had seen it at 3.10%.

The lender lifted its banking net interest margin guidance for the year to 3.10%, from 3.05% previously, but below consensus of 3.12% for 2023. Lloyds also now sees its return on tangible equity to be greater than 14%, from around 13%, while consensus forecasts 14.5%.

It closed the period with a common equity Tier 1 ratio--a key measure of balance-sheet strength--of 14.2%, in line with market expectations.

The board proposed an interim dividend of 0.92 pence in line with views, compared with 0.80 pence last year.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

July 26, 2023 02:44 ET (06:44 GMT)

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