Lloyds 1Q Pretax Profit Plunged on GBP1.4 Billion Impairments as Pandemic Hit -- Earnings Review
April 30 2020 - 5:52AM
Dow Jones News
By Sabela Ojea
Lloyds Banking Group PLC on Thursday reported earnings for the
first quarter of 2020. Here is what you need to know:
PRETAX PROFIT: Lloyds made a pretax profit for the first quarter
of 74 million pounds ($92.1 million) compared with GBP1.60 billion
for the same period a year earlier. It was expected to fall to
GBP863.3 million pounds, taken from Lloyds's compiled consensus and
based on ten estimates.
NET INCOME: The U.K. bank's net income fell to GBP3.95 billion
compared with GBP4.42 billion in the year-earlier period. Net
income was expected to fall to GBP4.04 billion, also taken from
Lloyds's compiled consensus and based on ten estimates.
WHAT WE WATCHED:
-IMPAIRMENTS: The bank took a larger-than-expected GBP1.43
billion impairment charge in the period as a result of the
coronavirus pandemic, compared with GBP275 million in the first
quarter of 2019. Impairments were expected to rise to GBP890
million, according to Lloyds's compiled consensus.
-NET INTEREST MARGIN: The lender's net interest margin fell 12
basis points to 2.79%, in line with the bank's previous
expectations.
-GUIDANCE: Lloyds suspended its previous guidance for the whole
year.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
April 30, 2020 06:37 ET (10:37 GMT)
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