- Category: Share Price Drivers
- Published on Friday, 01 March 2013 09:50
- Written by Sam Coventry
Reactions to the Lloyds Banking Group results
Liberum Capital analyst Cormac Leech would see today's pullback as an opportunity to Buy into LLOY; the broker has reiterated his Buy rating on the stock in the wake of the results.
Leech's decision notes the underlying PBT beat which came in at £703m vs. consensus expectations for £524m.
We note that the beat was driven by a better than expected outcome on loan losses:
Revenues £31m light at £4,555m; Costs slightly worse at £2,574m vs. consensus of £2,545m.
"However loan losses substantially better at £1,278m vs. cons £1,517m. Below the line items slightly worse than expected at -£690m despite higher than expected £1.5bn PPI provision," says Leech.
Group net interest margin in line at 1.93% (although 2013e guidance slightly disappointing at 1.98% vs. consensus of 2.00%)
4Q12 Core PBT of £1,452m ahead of LCe by £75m with beat in revenues (OOI) and costs beating by £106m; LLPs slightly worse.
Leech has a target price of 62p set on Lloyds shares.
Markets: Chinese eco data check market gains, UK PMI shocker
The FTSE 100 is in the red come mid-morning in London - the likes of Lloyds are weighing - however risk sentiment is poor across the board. (UK economic data shocker - Manufacturing PMI plummets).
"After supportive monetary policy comments took the UK index back to the highs of late last week, macro data put gains in check," says Mike van Dulken, Head of Research at Accendo Markets.
China PMI manufacturing missed expectations slightly, falling back toward the key 50 breakeven growth/contraction level, reigniting growth/recovery concerns.
Euro PMI data this morning nothing inspiring but the fact not worse than expected is providing some support to sentiment.
Note bad Italian unemployment though, likely to mean continued rejection of austerity and political deadlock.
US budget sequester today (government spending cuts) not affecting risk appetite much.
Newer news items:
- HSBC Holdings plc : HSBA shares should be switched for Lloyds Banking Group plc / Standard Chartered plc on valuation says analyst - 04/03/2013 10:20
- HSBC Holdings plc : HSBA shares pushed lower as profits miss target; FTSE 100 seen in the red on Chinese concerns - 04/03/2013 09:14
- FTSE Focus: Debenhams Plc, ARM Holdings Plc : DEB shares crash by 10 pct, ARM Holdings sees target share price upgraded by Deutsche - 04/03/2013 08:55
- Lloyds Banking Group PLC (LON:LLOY) : Shares sold off as investors focus on "continued losses, more provisions" - 01/03/2013 15:41
- Royal Bank of Scotland Group Plc : RBS hit by fresh downgrade action as analysts reassess forecasted performance - 01/03/2013 10:35
Older news items:
- British Pound Sterling: Pound to Euro in strong recovery as sterling is seen outperforming on currency markets - 28/02/2013 12:56
- Royal Bank of Scotland Group plc (LON:RBS) : Investors give a firm no to RBS results sending the stock down by over 5 pct - 28/02/2013 12:17
- Intel Corporation vs ARM Holdings plc : INTC continues to snatch more of ARM's turf, Sell ARM say Liberum - 28/02/2013 11:58
- ARM Holdings plc + QUALCOMM, Inc : ARM to snatch further share from Imagination Technologies; but QCOM unlikely to deliver new business for graphic IP - 28/02/2013 11:44
- International Consolidated Airlines Grp : IAG shares continue their march higher, but burdens of Iberia are laid bare - 28/02/2013 11:24
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