Lloyds shares rise on 2023 profit jump (2024)

FAQs

Will Lloyds shares go back up? ›

Overall, I continue to remain positive about Lloyds' prospects. For 2024, analysts are expecting earnings per share of 6.2p. This implies a forward price-to-earnings ratio of 8.4, which is lower than when the bank's shares were last above 60p, in January 2020.

The key figures reported in Lloyd's 2023 Full Year results are: Gross written premium of £52.1bn (2022: £46.7bn) Underwriting profit of £5.9bn (2022: £2.6bn) Combined ratio of 84.0% (2022: 91.9%)

With our Full Year 2023 results the Board announced a final ordinary dividend of 1.84 pence per share, resulting in a total ordinary dividend for 2023 of 2.76 pence per share, up 15 per cent on prior year and in line with the Group's progressive and sustainable ordinary dividend policy.

Future criteria checks 1/6. Lloyds Banking Group is forecast to grow earnings and revenue by 5.2% and 3% per annum respectively. EPS is expected to grow by 8.9% per annum. Return on equity is forecast to be 11.8% in 3 years.

Lloyds Banking Group PLC has a conensus rating of Moderate Buy, which is based on 8 buy ratings, 2 hold ratings and 1 sell ratings.

Lloyds Banking's next quarterly payment date is on May 21, 2024, when Lloyds Banking shareholders who owned GB:LLOY shares before Apr 11, 2024 received a dividend payment of 1.84p per share.

A buyback reduces the number of shares in existence, and each share left gets a bit more in earnings and dividends. So the share price should rise proportionally. With FY results in February, Lloyds announced a new £2bn buyback. That's close to 7% of the market-cap at the time.

In just a few weeks since the first half of February, the shares have moved up 25%. Despite that increase, they trade at a discount to book value and on a price-to-earnings ratio of just seven. That makes the bank look cheap by some measures. Indeed, that could explain why investors have been bidding its shares up.

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"Lloyds' 14.6% common equity tier 1 ratio is circa 110 basis points above its target. Given this, and Lloyds' strong capital generation, we forecast an average total annual yield (dividends plus buybacks) of circa 13% during the next three years," said Berenberg.

What is next share dividend for 2023? ›

Lloyds Banking Group Current Yield Details - 5.32%

The current Lloyds Banking Group dividend yield is 5.32%. This yield is based on trailing twelve months dividends. In the past year, the LLOY dividend yield has ranged from 5.03% to 6.34%.

It's also worth noting that analysts' forecasts suggest Lloyds shares should be trading above their current levels anyway. Forecasts are for earnings per share of 7.26p in 2023, 6.43p in 2024, and 7.22p in 2025. In turn, the average share price target is 59.9p. This is 43% above the current level.

Lloyds Banking Group plc (the "Company") is today launching a share buyback programme to repurchase up to £2 billion of ordinary shares. The Company previously announced its intention to commence the programme on 22 February 2024. The Company has entered into an agreement with Morgan Stanley & Co.

Lloyds Banking Group net worth as of May 01, 2024 is $40.94B. Lloyds Banking Group plc, formerly Lloyds TSB Group plc, is a United Kingdom-based financial services company, whose businesses provide a range of banking and financial services in the United Kingdom and a limited number of locations overseas.

Lloyds Banking Group plc (the "Company") is today launching a share buyback programme to repurchase up to £2 billion of ordinary shares. The Company previously announced its intention to commence the programme on 22 February 2024. The Company has entered into an agreement with Morgan Stanley & Co.

Lloyds' share price has fallen around 20% in the past year due to fears over the British economy and falling NIMs. Concerns over gigantic car-finance-related charges add another layer of danger to the business. So I'm unmoved by the firm's low price-to-earnings (P/E) ratio of 6.4 times and 7.4% dividend yield.

Volatility assured ahead

So there's plenty of scope for the Lloyds share price to drop below 30p again in 2024, driven by falling profits. But if it does, I'd turn bullish on the stock because the business will likely be set up for a cyclical rebound. It's not all bad news. There's no immediate sign of a dividend cut.

Lloyds Steels share price: The multibagger counter has gained 109.48 per cent in the last six months and 159.77 per cent on a year-to-date (YTD) basis.