Lloyds Banking Group Reports Drop in Profit for Fiscal 2024

Lloyds Banking Group reports a significant profit decline. The bank's fiscal 2024 profit before tax fell to £5.97 billion, a 20% drop compared to last year, reflecting tough market conditions that may impact investor sentiment.

Date: 20-02-2025

AI Rating: 4

Profit and Earnings Decline: Lloyds Banking Group reported a fiscal 2024 statutory profit before tax of £5.97 billion, which is a 20% decrease from the previous year. This dramatic reduction in profit could imply challenges in the bank's operational efficiency and may negatively impact investor confidence.

Earnings Per Share (EPS): The basic earnings per share (EPS) fell to 6.3 pence from 7.6 pence, marking a decrease that highlights the company's diminished profitability. A lower EPS typically suggests weaker financial performance, which can lead to a decrease in stock price as investors look for better returns elsewhere.

Revenue Growth and Income: The total income for the fiscal year was reported at £34.28 billion, down 3%, and underlying net interest income fell by 7% to £12.84 billion. These figures reflect a contraction in revenue generation, which could adversely influence stock prices as slower growth may lead to nervousness among investors regarding the bank’s future performance.

Dividends: On a positive note, the board has recommended a final ordinary dividend of 2.11 pence per share, increasing the total ordinary dividend for 2024 by 15% compared to the prior year. This decision may attract dividend-seeking investors and can serve as a buffer against declining stock prices.

Overall, the report indicates a challenging financial year for Lloyds Banking Group, with declines in key metrics suggesting potential pressures on stock prices moving forward.

Stocks: LLOY.L LYG