Lloyds (LYG) Stock Jumps 4.28% on Wednesday to Hit Highest Price Since Brexit

Lloyds Stock (LYG)Leaps

 

Lloyds (LYG) stock rose 4.28% in early afternoon trade on Wednesday, as the banking giant released its earnings report. The company’s pretax profit rose to 1.79 billion pounds, up 2% on the quarter. Bloomberg analysts forecasted the company’s pretax profit to hit 1.71 billion pounds on the quarter.

Lloyds (LYG)

Lloyds aims to remain the largest consumer bank in Britain.

Record-low interest rates were offset by expanding higher-margin lending and cutting jobs to maintain profitability. Antonio Horta-Osorio, Chief Executive Officer, states that the company’s net interest margins will exceed 2.7% in 2017, beating projections.

The company recently purchased MBNA U.K. from Bank of America Corp.

Lloyds stock in London trade is up 11% in 2017. The bank will pay 2.55 pence per share in ordinary dividend. The company will issue a special dividend of 0.5 pence, too. The dividend is 30 pence higher than a year prior. Financial strength at the company rose 13.8%, up from 13.4% in September.

The company expects to gain 170 – 200 basis points capital this year.

Negative Pre-Tax Profits

 

Lloyd’s pretax profit a year prior was in the negative, with a 507 million pound loss. Considering restructuring and conduct charges, the company’s pretax profit hit 973 million pounds. Capital generation helped the company absorb the impact of acquiring MBNA.

Shareholders didn’t expect the company to pay a special dividend this quarter.

Impairments are down to 196 million pounds, down 16%, compared to a year prior. Revenue fell to 4.35 billion pounds, down 2% on the quarter. One-time items hit over 800 million pounds. Restructuring costs rose to 232 million pounds. Conduct charges were 475 million pounds.

Lloyds bank profits were at their highest level in 10 years. The company’s positive report helped boost the FTSE 100. Home builder Barratt (BDEV) also helped support the FTSE 100, rising 2% on the day and half year profits rising 8.8%.