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i think 7.7p
same every year big claims
must be crazy i bought 1000 shares top up £253.65 time will tell if iam
profits down , that is the cause of the sell off
City analysts think Lloyds’ annual earnings will drop 23% in 2022. I think the chances of a more painful decline are growing, however, as are the prospects of bad loans surging and sustained pressure on revenues. And I worry that these problems could drag beyond the current year
Review of results
During the half-year to 30 June 2021, the Group recorded a profit before tax of £193 million compared to £7 million during the half-year to 30 June 2020, an overall increase of £186 million. The Group has benefited from robust performance in its retail banking and corporate sales businesses but noted that trading performance has been impacted by limited underlying market volatility. Throughout, the Group has continued to support customers and provided financial assistance to the UK economy and the economies in which our customers operate.
The Group has benefitted from an impairment net credit of £47 million (2020: £77 million impairment charge) in the income statement relating to expected credit loss (ECL) driven by the improving economic outlook. The Group's ECL on loans and commitments, calculated under IFRS 9, requires the use of a range of possible future outcomes and more details are contained in Notes 2 and 4.
Regulatory capital adequacy remains strong, with a CET1 ratio of 13.8% (2020: 14.8%); reflecting the stability of the business, and the strength of the client franchise served by the Group. Risk weighted assets have increased by £1,902 million from £16,610 million at 31 December 2020 to £18,512 million at 30 June 2021. This is predominantly as a result of the phasing of the Group's IBOR transition project, is largely temporary and does not represent additional risk taken by the Group.
Total income was £350 million in the first half of 2021 compared to £291 million in the first half of 2020. This predominantly comprises net interest income (NII) of £70 million (£30 million in the half-year to 30 June 2020), net fee and commission income of £117 million (£96 million in the half-year to 30 June 2020) and net trading income of £171 million (£165 million in the half-year to 30 June 2020). This reflects an improving NII position as a result of stable funding costs in 2021 and management action with regard to reducing funding and liquidity risk.
Operating expenses were £204 million, down from £207 million in the half-year to 30 June 2020, a reduction of £3 million as a result of cost control initiatives. Costs consist predominantly of management charges relating to the Intra Group Agreement paid to Lloyds Bank plc, staff costs and other operating expenses. The taxation charge in the period was £60 million (six months to 30 June 2020 £27 million credit) reflecting increased profitability in 2021