CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

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

Profits £4.4 billion
Revenue £17.8 billion

Lloyds earnings

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.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change
-
-
-
-
China 300
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.