Lloyds Banking Group Pretax Profit Beats Views; Backs Guidance

By Elena Vardon

Lloyds Banking Group confirmed its guidance after it reported better-than-expected pretax profit for the second quarter despite lower income.

The British bank on Thursday reported pretax profit of 1.70 billion pounds ($2.19 billion) for the three months ended June 30, ahead of the GBP1.61 billion it posted for the same quarter the previous year and of GBP1.58 billion taken from a company-compiled consensus.

The FTSE 100-listed group's net income came in at GBP4.15 billion, compared with GBP4.53 billion for the year-earlier period, missing expectations of a GBP4.27 billion estimate. Lower on-year net interest income--the difference between what lenders earn on loans and pay out on deposits--was behind the drop, which was partly offset by higher other income.

Lloyds's net interest margin slipped to 2.93% as expected, from 2.95% in the first quarter.

"Our progress to date enables us to reaffirm 2024 guidance and remain confident in achieving our 2026 strategic objectives and guidance," Chief Executive Charlie Nunn said.

The lender closed the period with a common equity Tier 1 ratio--a key measure of balance-sheet strength--of 14.1%, while market expectations stood at 14.2%.

The board proposed an interim dividend of 1.06 pence.

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

(END) Dow Jones Newswires

July 25, 2024 02:44 ET (06:44 GMT)

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