The UK’s largest lender said its quarterly statutory pre-tax profit was £1.8bn, up from £968m over the same period in 2021. During the fourth quarter it observed a small increase in defaults, but that credit performance was generally strong despite the cost-of-living crisis. Lloyds’ annual report also showed the bank’s staff bonus pool increased by 12% to £446m, “as a result of the group’s strong performance in 2022”. For 2023, return on tangible equity is expected to be around 13% and net interest margin’s expected to exceed 3.05%. “Guidance on net interest margin for 2023 was a little lower than markets had hoped for, and that’s a trend we’ve seen across the sector over the last couple of weeks.
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