Yahoo Finance

• Statutory Profit After Tax: GBP4.5 billion, or GBP5 billion excluding the Q4 motor provision.

• Return on Tangible Equity (RoTE): 12.3%, or 14% excluding the motor provision.

• Net Income: GBP17.1 billion for the full year.

• Net Interest Margin: 2.95% for the full year.

• Operating Costs: GBP9.4 billion, up 3% year-on-year.

• Impairment Charge: GBP433 million, equating to an asset quality ratio of 10 basis points.

• Tangible Net Asset Value (TNAV) per Share: Increased to 52.4p, up 1.6p in the year.

• Capital Generation: 148 basis points, or 177 basis points excluding the Q4 motor provision.

• Group Lending Balances: GBP459 billion, up GBP9 billion or 2% in the year.

• Deposits: Grew by 2% or GBP11 billion during the year.

• Ordinary Dividend Increase: 15% increase in the ordinary dividend.

• Share Buyback: GBP1.7 billion announced.

• Additional Revenues from Strategic Initiatives: GBP0.8 billion, ahead of the GBP0.7 billion target.

• Gross Cost Savings: GBP1.2 billion, more than offsetting inflation impacts.

• Warning! GuruFocus has detected 4 Warning Sign with LYG.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Lloyds Banking Group PLC (NYSE:LYG) reported a robust financial performance for 2024, with statutory profit after tax reaching GBP4.5 billion, or GBP5 billion excluding a Q4 motor provision.

• The company announced a 15% increase in the ordinary dividend and a share buyback of GBP1.7 billion, reflecting strong shareholder distributions.

• Lloyds Banking Group PLC (NYSE:LYG) achieved GBP0.8 billion of additional revenues from strategic initiatives, surpassing their target of GBP0.7 billion.

• The group delivered GBP1.2 billion of gross cost savings, more than offsetting inflationary pressures.

• Lloyds Banking Group PLC (NYSE:LYG) maintained a strong capital position with a CET1 ratio of 13.5% after dividend and buyback distributions, meeting their guidance.

Negative Points

• An additional GBP700 million provision was taken in Q4 related to motor finance commissions, impacting return on tangible equity and capital generation.

• Operating costs increased by 3% year-on-year to GBP9.4 billion, in line with guidance but reflecting inflationary pressures.

• The impairment charge for the year was GBP433 million, equating to an asset quality ratio of 10 basis points, with expectations for this to rise to circa 25 basis points in 2025.

• The company faces uncertainties related to the Supreme Court's decision on motor finance commissions, which could impact financial outcomes.

• Despite strong performance, the company anticipates ongoing headwinds from mortgage refinancing and deposit churn, which may affect future income growth.