Lloyds 2018 results: shares up 3% after earnings profits miss estimates
Lloyds stock is up despite missing profits estimates.
Lloyds stock is up after a positive earnings report. Lloyds profits rose despite a volatile time for British banks.
Lloyds earnings:key figures
Lloyds profits were £4.4 billion, an increase of 24%, but less than the expected £4.6 billion that financial experts predicted. Lloyds revenue jumped 2% to £17.8 billion. The financial institute set aside £750 million to settle payment protection insurance claims brought by customers in a banking scandal. The bank’s loans to small businesses and high-income clients also increased.
Despite the volatility of Brexit, Lloyds chief executive officer, Antonio Horta-Ocasio, said that the bank was prepared for the measure’s implementation next month.
‘We are planning for a deal and a smooth Brexit transition that should lead the economy to grow at around the same pace you have now of about 1-1.5 %. Of course other scenarios can play out. Irrespective of that our business model is the right one and it is true that we face the future with confidence, otherwise we would not be ramping up our investment in this[banking] business,’ said Horta-Ocasio.
Though Horta-Osario was bullish on the UK economy, he warned that there is still uncertainty.
‘The UK economy has proven itself to be resilient, with record employment. The near-term outlook for the UK economy remains uncertain,’ said Horta-Ocasio.
What do Lloyds earnings mean for its share price?
Lloyds earnings could mean positive news for its share price. Even though Lloyds profits were weaker-than-expected, but still strong enough to calm investors. The better-than-expected revenue could lift Lloyds stock price above its current 60p.
How do Lloyds earnings compare to other bank stocks?
Lloyds earnings were better than other British banks, like HSBC Holdings. Even though Lloyds faced the same Brexit drama as other UK financial institutions, Lloyds revenue rose more than other banks.
What is Lloyds dividend forecast?
Lloyds has a high dividend forecast. Lloyds dividend forecast will be up by 5%. The bank will issue cash back to shareholders through a a £1.75 billion share buyback. In total, the financial institution will distribute £4 billion through dividend payments and share buybacks.
Lloyds 2018 earnings were mostly positive despite missing expectations. Lloyds has proven that it can withstand banking scandals and Brexit uncertainty to calm nervous investors.
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