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Lloyds (Q1 trading statement 25 April)
Hopes that producer price index (PPI) would diminish in importance for Lloyds have been dashed, as the regulator’s advertising campaign boosted the visibility of the scandal. Full-year results contained the admission that the group would have to put £600 million more aside, pushing the total bill above £18 billion. Investors will be looking for an update on the plan to boost capital generation, in order to put payouts on a more secure footing. The shares continue to trade on an undemanding forward price-earnings (PE) ratio of 8.7, against 12.8 for its peers and a two-year average of 9.2, while its 4.6% yield is above the 3.9% average of the past two years.
Lloyds shares continue to trade within the range that has held since early 2017. The price is currently in the middle of the range, bounced by 61p on the downside and 71 and 74p on the upside.
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