Lloyds 2Q Pretax Profit Rose Ahead of Views, Buys Embark Group for GBP390 Million -- Update
July 29 2021 - 02:05AM
Dow Jones News
By Sabela Ojea
Lloyds Banking Group PLC on Thursday reported a rise in pretax
profit for the second quarter of 2021, beating market expectations,
and said that it is buying the investment and retirement platform
business Embark Group.
The FTSE 100-listed bank posted a pretax profit of 2.1 billion
pounds ($2.92 billion) for the period compared with a loss of
GBP676 million for the year-earlier period and a profit of GBP1.29
billion for the same period in 2019.
Lloyds was expected to post a pretax profit of GBP1.23 billion
for the period, according to its compiled consensus.
The bank released impairments of GBP333 million amid an economic
recovery, up from GBP323 million in the previous quarter.
Net income rose to GBP3.90 billion from GBP3.46 billion for the
year-earlier period and GBP4.40 billion for the second quarter of
2019. Net income was anticipated to come in at GBP3.69 billion,
taken from the bank's compiled consensus.
The bank ended the period with a common equity Tier 1 ratio--a
key measure of balance-sheet strength--of 16.7% and declared an
interim dividend of 0.67 pence a share.
The acquisition of Embark Group will entail paying around GBP390
million for the entire share capital of the target company upon
completion, Lloyds said, adding that it will receive GBP35 billion
of assets under administration on behalf of around 410,000 consumer
clients.
The move has led the bank to increase its strategic review 2021
net new money target to around GBP40 billion by 2023, from GBP25
billion previously, in order to reflect its increased growth
potential, Lloyds said.
"Embark will also enable the group to re-platform its pensions
and retirement proposition, delivering a market-leading platform
for intermediaries and significantly strengthening its offering in
retirement, an important growth market," it said.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
July 29, 2021 02:58 ET (06:58 GMT)
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