LSE:LLOY

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Lloyds Banking Group

Market Cap

UK£34.0b

Last Updated

2021/06/14 21:13 UTC

Data Sources

Company Financials +

Executive Summary

Lloyds Banking Group plc, together with its subsidiaries, provides a range of banking and financial services in the United Kingdom and internationally. More Details


Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

How has Lloyds Banking Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LLOY is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: LLOY's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-3.6%

LLOY

-1.6%

GB Banks

0.5%

GB Market


1 Year Return

51.7%

LLOY

38.6%

GB Banks

22.0%

GB Market

Return vs Industry: LLOY exceeded the UK Banks industry which returned 38.6% over the past year.

Return vs Market: LLOY exceeded the UK Market which returned 22% over the past year.


Shareholder returns

LLOYIndustryMarket
7 Day-3.6%-1.6%0.5%
30 Day-0.9%0.8%2.0%
90 Day15.3%7.0%6.0%
1 Year53.7%51.7%41.6%38.6%28.3%22.0%
3 Year-15.2%-22.3%-19.5%-26.9%14.0%-0.2%
5 Year-18.0%-31.7%9.9%-6.7%52.6%23.0%

Long-Term Price Volatility Vs. Market

How volatile is Lloyds Banking Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lloyds Banking Group undervalued compared to its fair value and its price relative to the market?

37.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LLOY (£0.48) is trading below our estimate of fair value (£0.76)

Significantly Below Fair Value: LLOY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LLOY is poor value based on its PE Ratio (17.7x) compared to the UK Banks industry average (12.4x).

PE vs Market: LLOY is good value based on its PE Ratio (17.7x) compared to the UK market (25.9x).


Price to Earnings Growth Ratio

PEG Ratio: LLOY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: LLOY's PB Ratio (0.7x) is in line with the GB Banks industry average.


Future Growth

How is Lloyds Banking Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

-0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LLOY's earnings are forecast to decline over the next 3 years (-0.4% per year).

Earnings vs Market: LLOY's earnings are forecast to decline over the next 3 years (-0.4% per year).

High Growth Earnings: LLOY's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LLOY's revenue (2.4% per year) is forecast to grow slower than the UK market (5% per year).

High Growth Revenue: LLOY's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LLOY's Return on Equity is forecast to be low in 3 years time (8.5%).


Past Performance

How has Lloyds Banking Group performed over the past 5 years?

0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LLOY has high quality earnings.

Growing Profit Margin: LLOY's current net profit margins (14.2%) are higher than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: LLOY's earnings have grown by 0.5% per year over the past 5 years.

Accelerating Growth: LLOY's earnings growth over the past year (2.5%) exceeds its 5-year average (0.5% per year).

Earnings vs Industry: LLOY earnings growth over the past year (2.5%) underperformed the Banks industry 8%.


Return on Equity

High ROE: LLOY's Return on Equity (4.7%) is considered low.


Financial Health

How is Lloyds Banking Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: LLOY's Assets to Equity ratio (17.6x) is moderate.

Allowance for Bad Loans: LLOY has a low allowance for bad loans (64%).

Low Risk Liabilities: 56% of LLOY's liabilities are made up of primarily low risk sources of funding.

Loan Level: LLOY has an appropriate level of Loans to Assets ratio (51%).

Low Risk Deposits: LLOY's Loans to Deposits ratio (96%) is appropriate.

Level of Bad Loans: LLOY has an appropriate level of bad loans (2%).


Dividend

What is Lloyds Banking Group current dividend yield, its reliability and sustainability?

1.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LLOY's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.28%).

High Dividend: LLOY's dividend (1.19%) is low compared to the top 25% of dividend payers in the UK market (4.01%).


Stability and Growth of Payments

Stable Dividend: LLOY has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LLOY has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.1%), LLOY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LLOY's dividends in 3 years are forecast to be well covered by earnings (48.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.4yrs

Average management tenure


CEO

William Leon Chalmers (52 yo)

0.17

Tenure

UK£1,477,000

Compensation

Mr. William Leon David Chalmers serves as Executive Director at Lloyds Bank Plc and Lloyds Banking Group since August 01, 2019 and serves as Chief Financial Officer since 2020. He serves as Acting Group Ch...


CEO Compensation Analysis

Compensation vs Market: William Leon's total compensation ($USD2.08M) is below average for companies of similar size in the UK market ($USD3.52M).

Compensation vs Earnings: William Leon's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LLOY's management team is seasoned and experienced (6.4 years average tenure).


Board Members

Experienced Board: LLOY's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LLOY insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lloyds Banking Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lloyds Banking Group plc
  • Ticker: LLOY
  • Exchange: LSE
  • Founded: 1695
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: UK£34.029b
  • Shares outstanding: 70.95b
  • Website: https://www.lloydsbankinggroup.com

Number of Employees


Location

  • Lloyds Banking Group plc
  • 25 Gresham Street
  • London
  • Greater London
  • EC2V 7HN
  • United Kingdom

Listings


Biography

Lloyds Banking Group plc, together with its subsidiaries, provides a range of banking and financial services in the United Kingdom and internationally. It operates through three segments: Retail; Commercia...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/14 21:13
End of Day Share Price2021/06/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.