Investors Chronicle on-line31 Jul 2019 16:20
IC TIP UPDATES:
First half pre-tax profits for Lloyds Banking Group (LLOY) have arrived seven per cent adrift of the same period last year and below market expectations. The fly in the ointment appears to be another £550m payment protection insurance charge in the second quarter, which the UK’s largest mortgage lender said was driven by a “significant increase in information request volumes…ahead of the August deadline”. More encouragingly, costs dropped 5 per cent, the interim dividend rose 5 per cent, and the net interest margin held firm at 2.9 per cent. Interim results made no mention of Tesco’s mortgage book, for which Lloyds has reportedly secured preferred bidding status. Shares are off 4 per cent in early trading, though we remain buyers.