The Lloyds Bank share price (LON: LLOY) (LLOY.L) has risen by 8% over the past month. Meanwhile, the FTSE 100 index (INDEXFTSE: UKX) to which the stock belongs has gained 3% over the same time period.
Within the last month, Lloyds released its first quarter investor update on 28 April. It showed that the bank’s net income declined by 7% year-on-year to £3.7 billion. It reduced costs by 2% to £1.9 billion as a result of its cost control and lower remediation costs. The firm’s statutory profit after tax was just under £1.4 billion. It was supported by business momentum and the release of expected credit loss provisions resulting from an improving economic outlook.
During the quarter, the company’s Core Equity Tier 1 (CET1) ratio increased by 54 basis points to 16.7%. This is ahead of its target of 12.5%, as well as being higher than the regulatory requirement of 11%. Loans and advances increased by £3.3 billion during the quarter so they now stand at £443.5 billion. Customer deposits also increased by £11.7 billion to £462.4 billion, with retail current accounts increasing by £5.6 billion.
The bank’s first quarter update included its views on the economic outlook. It enhanced its guidance for the full year. It now anticipates that net interest margin will be in excess of 245 basis points, operating costs to reduce to £7.5 billion and for risk-weighted assets in 2021 to be broadly stable versus 2020. Lloyds also intends to resume a progressive and sustainable dividend policy in the current year.
Included in the firm’s update was a reminder that the results would be the last under CEO Antonio Horta-Osorio. He left the bank at the end of April to become chairman of Credit Suisse. He has been replaced by former HSBC banker, Charles Nunn.
In the past year, the Lloyds share price has gained 53%. It is down 29% in the past five years. Over the same time periods the FTSE 100 index is up 20% and 15%, respectively.
There has been one director deal in the past month. Chair Robin Budenberg purchased just under 500,000 Lloyds Bank shares at a price of just over 45p on 30 April. The total value of the transaction was around £227,000.
The bank is next due to release an investor update on 20 May when it holds its AGM. Its share price at the time of writing is 46p.
Not Investment Advice
Note: Views expressed are those of the writer. The author does not own any stocks mentioned. The article is information, not advice. Share prices can rise and fall. Past returns are not a guide to the future. Please do your own research.