Lloyds's 2019 Underlying Pretax Profit Hit by PPI Costs, Impairments -- Earnings Review

By Sabela Ojea

Lloyds Banking Group PLC reported its scheduled results for 2019 on Thursday. Here's what you need to know:

PRETAX PROFIT: Lloyds made a pretax profit of 4.39 billion pounds for 2019, a significant fall compared with GBP5.96 billion for the same period a year earlier, after being hit by PPI costs. Analysts had forecast Lloyds to make a pretax profit of GBP4.51 billion for the year, taken from FactSet and based on eleven estimates.

UNDERLYING PRETAX PROFIT: Underlying pretax profit for the year came to GBP7.53 billion from GBP8.07 billion in 2018--it was expected to come to GBP7.85 billion, also according to FactSet and based on eleven analysts' estimates.

WHAT WE WATCHED:

-IMPAIRMENTS: The bank suffered impairments of GBP1.3 billion from GBP937 million at the end of 2018. This affected its underlying profit for the year, Lloyds said.

-BUYBACK PROGRAM: The British bank didn't resume its share buyback program which was suspended in the third quarter of the year.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

February 20, 2020 07:32 ET (12:32 GMT)

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