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Feb 20 2020, 08:40 GMT
Lloyds Banking Group
2019 miss; mixed 2020 outlook but reiterates capital guidance
- Sectors : Banks
- Companies : Lloyds Banking Group
DAVY VIEW
FY 2019 results missed our expectations on lower other income and higher remediation costs, but the dividend is in line with our expectations. Guidance for 2020 is mixed with lower net interest margin (NIM) partly offset by better costs guidance. However, management’s CET 1 remains unchanged after incorporating forthcoming changes to the UK Countercyclical Capital Buffer (CCyB), which should be seen as a positive – enabling Lloyds Banking Group (LLOY) to look again to capital returns over and above its ordinary dividend.
