When is Lloyds' earnings date and what should you expect?
Lloyds Banking Group will announce its full-year 2024 results on February 20, with analysts forecasting a decline in pre-tax profits to £6.4 billion from £7.5 billion.
What to expect from Lloyds' earnings
Trading platform users should note that Lloyds will release its results at 7:00 AM GMT on Thursday 20 February, followed at 9:30 AM GMT by a presentation from senior management.
Analysts project a decrease in annual profits, partly due to potential car finance commission scandal liabilities. The bank has already set aside £450 million for these issues, with potential additional costs reaching £1.3 billion as the UK Supreme Court denied Chancellor Rachel Reeves' request to intervene. Despite the Treasury's attempt to participate, the court permitted the Financial Conduct Authority (FCA) to further investigate, underscoring the case's complexity and its potential impact on the financial sector.
Nonetheless analysts expect a pre-tax profit of approximately £6.5 billion, down 13% from £7.5 billion in 2023 and a near 13% drop in earnings per share (EPS) to 6.94p. Revenue is expected to increase by close to 7% year-on-year (YoY) to £4.52 billion.
Third quarter (Q3) performance showed resilience, with statutory pre-tax profit of £1.86 billion exceeding analyst expectations.
Key financial metrics and performance indicators
The net interest margin stood at 2.95% for Q3, with full-year guidance maintained above 2.90%.
These metrics demonstrate the bank's operational strength despite challenging conditions with regards to falling UK interest rates and the UK chancellor’s tax increases.
Strategic developments and transformation
Lloyds continues to emphasise digitisation and diversification in its Business and Commercial Banking segments.
The bank has maintained its commitment to sustainable finance, supporting commercial banking customers with significant funding.
These initiatives could provide resilience against broader market challenges.
Market context and sector outlook
The UK banking sector faces potential headwinds from proposed employer tax increases under Labour's fiscal policies.
Regulatory investigations continue to influence sector performance and sentiment.
The bank's strategic investments could provide opportunities despite economic uncertainties.
Lloyds analyst outlook
According to LSEG Data & analytics, analysts have set an average price target of 66.29 pence the Lloyds share price, suggesting potential upside of approximately 5% from current levels (as of 18/02/2025). 1 analyst has a ‘strong buy’ recommendation, 5 a ‘buy’, 13 a ‘hold’ and 1 a ‘sell’ recommendation.
Lloyds has a TipRanks Smart Score of ’7 Neutral’ and is rated as a ‘hold’ by analysts with 1 ’buy’, 5 ‘hold’ and 1 ‘sell’ recommendations (as of 18/02/2025).
Lloyds technical analysis
The Lloyds share price dipped by over 4% from Monday’s over five-year high at 64.82p following the UK Supreme Court’s denial of Chancellor Rachel Reeves' request to intervene in the Lloyds car finance mis-selling case, before regaining some lost ground.
Lloyds daily candlestick chart
A rise above the February high at 64.82p is needed for the major 70.00-to-74.00p resistance zone to eventually be reached. It consists of the April 2014-to-November 2015 lows and the March 2016-to-December 2019 highs and as such is likely to cap the advance for several weeks at least, once reached.
Lloyds monthly candlestick chart
While the 53.08-to-52.44p support zone underpins, the long-term uptrend remains intact. It encompasses the March 2024 high and June 2024-to-January 2025 lows.
Minor support above this key support zone comes in at the January-to-February 60.30p-to-59.00 price gap.
Investment considerations
Monitor the impact of potential additional provisions for the car finance commission scandal.
Consider the bank's ability to maintain its net interest margin in the current rate environment.
Watch for updates on strategic initiatives and their contribution to growth.
Keep an eye on management's outlook for the UK economy and banking sector.
How to trade Lloyds' earnings:
- Research the company's recent performance and market conditions
- Open a CFD account with us
- Search for Lloyds in our platform or app
- Place your trade
Remember that banking stocks can be sensitive to economic conditions and regulatory changes. All trading carries risk, and you should never invest more than you can afford to lose.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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