Lloyds 'beginning to prosper' amid UK recovery, says Hargreaves Lansdown

Most of Lloyds' key financial metrics have continued to 'appreciate measurably', according to Hargreaves Lansdown Stockbrokers."Lloyds is often seen as a proxy for the UK economy, and although they are inextricably linked, both are beginning to prosper after a long period of austerity," said Richard Hunter, Head of Equities at Hargreaves Lansdown Stockbrokers.Lloyds said on Thursday that underlying profits rose by 22% in the first quarter, helped by a 10% rise in net interest income, as well as a fall in costs and a drop in impairment charges. The company said it continues to expect to apply to regulators in the second half to restart dividend payments. Hunter said that outlook comments from the bank were "upbeat", though not excessively so given that "there remains some way to go"."Less positively, the government stake remains an unwelcome influence, the stock cannot yet appeal to income seeking investors and the possibility of further regulatory censure weighs heavily on the sector," he said.The stock was fallen around 10% over the past three months but still remains up 39% year-on-year, compared to just a 5% rise for the benchmark FTSE 100."Alongside this performance is an improvement to the market consensus, which has recently strengthened to a 'buy'," Hunter said.The stock was 4.4% higher at 78.67p by 09:47.BC