Lloyds 1Q Pretax Profit Plunged on GBP1.4 Billion Impairments as Pandemic Hit -- Earnings Review

By Sabela Ojea

Lloyds Banking Group PLC on Thursday reported earnings for the first quarter of 2020. Here is what you need to know:

PRETAX PROFIT: Lloyds made a pretax profit for the first quarter of 74 million pounds ($92.1 million) compared with GBP1.60 billion for the same period a year earlier. It was expected to fall to GBP863.3 million pounds, taken from Lloyds's compiled consensus and based on ten estimates.

NET INCOME: The U.K. bank's net income fell to GBP3.95 billion compared with GBP4.42 billion in the year-earlier period. Net income was expected to fall to GBP4.04 billion, also taken from Lloyds's compiled consensus and based on ten estimates.

WHAT WE WATCHED:

-IMPAIRMENTS: The bank took a larger-than-expected GBP1.43 billion impairment charge in the period as a result of the coronavirus pandemic, compared with GBP275 million in the first quarter of 2019. Impairments were expected to rise to GBP890 million, according to Lloyds's compiled consensus.

-NET INTEREST MARGIN: The lender's net interest margin fell 12 basis points to 2.79%, in line with the bank's previous expectations.

-GUIDANCE: Lloyds suspended its previous guidance for the whole year.

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

(END) Dow Jones Newswires

April 30, 2020 06:37 ET (10:37 GMT)

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