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Lloyds (LON: LLOY) Profit growth: Bank upgrade forecast


The Lloyds Banking Group (LSE: LLOY) The share price rose about 3% in the first trading this morning. The profit came after the bank announced a তৃতীয় 1,600m profit in the third quarter, more than double the same period last year.

As the housing market continues to boom, Lloyds added £ 2.7 billion in new mortgage loans to the quarter. Customer deposits were also higher, rising 4.7 billion to £ 479.1bn.

The increase in lending has helped Lloyds ’net interest income and its improvement The amount of total interest. It presents the difference between the interest received on a loan and the interest paid on a deposit. This is a key measure of profitability for a bank.

Losses from bad loans tend to be smaller than expected, providing more lift for profit. Last year, Lloyds set aside 4,247m for potential bad debts. So far this year, the bank has released পরিমাণ 740m of this amount, including £ 84m in the third quarter.

2021 Guide has been upgraded

CEO Charlie Nan has now upgraded the bank’s financial guidelines for 2021, suggesting that profits for the full year will be slightly higher than previously expected.

There was no talk today about this year’s dividend or any share buyback plan. But the bank’s strong performance so far this year means it now has significantly more capital than it needs.

Today’s third-quarter results show that Lloyds ’general equity tier 1 ratio at the end of September was 17.2%, about 5% ahead of its current target of 12.5%. In general, a bank’s ability to pay dividends is based on the amount of its available surplus capital.

Prior to today’s results, Lloyds shares offered a forecast dividend gain of 4.5%.

The post Lloyds (LON: LLOY) Profit growth: Bank upgrade forecast first appeared on The Motley Flower UK.

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Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Opinions about the companies mentioned in this article may differ from those of the author and therefore our official recommendations for subscription services such as Share Advisor, Hidden Winner and Pro. Here at The Motley Fool we believe that considering the insights of different ranges makes us better investors.



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