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Lloyds Banking Group

LSE:LLOY
Snowflake Description

Excellent balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LLOY
LSE
£47B
Market Cap
  1. Home
  2. GB
  3. Banks
Company description

Lloyds Banking Group plc provides banking and financial services under the Lloyds Bank, Halifax, Bank of Scotland, and Scottish Widows brands in the United Kingdom and internationally. The last earnings update was 55 days ago. More info.


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LLOY Share Price and Events
7 Day Returns
1.7%
LSE:LLOY
1%
GB Banks
0.6%
GB Market
1 Year Returns
0.3%
LSE:LLOY
-8.7%
GB Banks
1.1%
GB Market
LLOY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lloyds Banking Group (LLOY) 1.7% 5.8% 13.6% 0.3% -3.1% -11.9%
GB Banks 1% 5.4% 4.4% -8.7% 17% -11.2%
GB Market 0.6% 1.9% 6.9% 1.1% 15.6% 6.2%
1 Year Return vs Industry and Market
  • LLOY outperformed the Banks industry which returned -8.7% over the past year.
Price Volatility
LLOY
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Lloyds Banking Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Lloyds Banking Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Lloyds Banking Group.

LSE:LLOY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 15 analysts.
= Stable Book Value * Return on Equity
= £0.67 * 12.3%
£0.08
Book Value of Equity per Share Weighted future Book Value estimates from 11 analysts. £0.67
Discount Rate (Cost of Equity) See below 13.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:LLOY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.593 (1 + (1- 19%) (342.92%))
1.831
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.83
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.831 * 6.65%)
13.4%

Discounted Cash Flow Calculation for LSE:LLOY using Excess Returns Model Model

The calculations below outline how an intrinsic value for Lloyds Banking Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:LLOY Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (12.3% – 13.4%) * £0.67)
£-0.01
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £-0.01 / (13.4% - 1.23%)
£-0.06
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £0.67 + £-0.06
£0.61
LSE:LLOY Discount to Share Price
Calculation Result
Value per share (GBP) From above. £0.61
Current discount Discount to share price of £0.66
= -1 x (£0.66 - £0.61) / £0.61
-8.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Lloyds Banking Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lloyds Banking Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lloyds Banking Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:LLOY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.06
LSE:LLOY Share Price ** LSE (2019-04-18) in GBP £0.66
United Kingdom of Great Britain and Northern Ireland Banks Industry PE Ratio Median Figure of 15 Publicly-Listed Banks Companies 10.35x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lloyds Banking Group.

LSE:LLOY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:LLOY Share Price ÷ EPS (both in GBP)

= 0.66 ÷ 0.06

11.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lloyds Banking Group is overvalued based on earnings compared to the GB Banks industry average.
  • Lloyds Banking Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Lloyds Banking Group's expected growth come at a high price?
Raw Data
LSE:LLOY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
7.2%per year
United Kingdom of Great Britain and Northern Ireland Banks Industry PEG Ratio Median Figure of 14 Publicly-Listed Banks Companies 0.86x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:LLOY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.88x ÷ 7.2%

1.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lloyds Banking Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Lloyds Banking Group's assets?
Raw Data
LSE:LLOY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £0.71
LSE:LLOY Share Price * LSE (2019-04-18) in GBP £0.66
United Kingdom of Great Britain and Northern Ireland Banks Industry PB Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.88x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.51x
LSE:LLOY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:LLOY Share Price ÷ Book Value per Share (both in GBP)

= 0.66 ÷ 0.71

0.93x

* Primary Listing of Lloyds Banking Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lloyds Banking Group is overvalued based on assets compared to the GB Banks industry average.
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Value checks
We assess Lloyds Banking Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Lloyds Banking Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Lloyds Banking Group expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lloyds Banking Group expected to grow at an attractive rate?
  • Lloyds Banking Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Lloyds Banking Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Lloyds Banking Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:LLOY Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:LLOY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 7.2%
LSE:LLOY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 2%
United Kingdom of Great Britain and Northern Ireland Banks Industry Earnings Growth Rate Market Cap Weighted Average 12.7%
United Kingdom of Great Britain and Northern Ireland Banks Industry Revenue Growth Rate Market Cap Weighted Average 4.6%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:LLOY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:LLOY Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 18,940 5,324 3
2021-12-31 18,869 5,190 15
2020-12-31 18,719 5,010 17
2019-12-31 18,601 4,740 15
LSE:LLOY Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 17,550 -11,300 3,975
2018-09-30 17,800 4,049
2018-06-30 17,748 -10,641 4,122
2018-03-31 17,782 3,751
2018-01-01 17,741 -19,523 3,494
2017-09-30 17,647 3,158
2017-06-30 16,855 -20,869 1,750
2017-03-31 17,641 2,126
2016-12-31 16,598 6,418 1,742
2016-09-30 16,460 993
2016-06-30 16,717 15,801 1,460
2016-03-31 15,456 139

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lloyds Banking Group's earnings are expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).
  • Lloyds Banking Group's revenue is expected to grow by 2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:LLOY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Lloyds Banking Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:LLOY Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 0.08 0.08 0.08 1.00
2021-12-31 0.08 0.08 0.07 7.00
2020-12-31 0.07 0.08 0.06 9.00
2019-12-31 0.07 0.07 0.06 9.00
LSE:LLOY Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.06
2018-09-30 0.06
2018-06-30 0.06
2018-03-31 0.05
2018-01-01 0.05
2017-09-30 0.04
2017-06-30 0.02
2017-03-31 0.03
2016-12-31 0.02
2016-09-30 0.01
2016-06-30 0.02
2016-03-31 0.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Lloyds Banking Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Lloyds Banking Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lloyds Banking Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lloyds Banking Group's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Lloyds Banking Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Lloyds Banking Group's 1-year earnings growth is less than its 5-year average (13.9% vs 54.9%)
  • Lloyds Banking Group's earnings growth has not exceeded the GB Banks industry average in the past year (13.9% vs 42.2%).
Earnings and Revenue History
Lloyds Banking Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lloyds Banking Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:LLOY Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 17,550.00 3,975.00 640.00
2018-09-30 17,800.00 4,049.00 607.00
2018-06-30 17,748.00 4,122.00 647.00
2018-03-31 17,782.00 3,751.00 665.00
2018-01-01 17,741.00 3,494.00 645.00
2017-09-30 17,647.00 3,158.00 1,409.00
2017-06-30 16,855.00 1,750.00 1,135.00
2017-03-31 17,641.00 2,126.00 872.00
2016-12-31 16,598.00 1,742.00 640.00
2016-09-30 16,460.00 993.00 532.00
2016-06-30 16,717.00 1,460.00 532.00
2016-03-31 15,456.00 139.00 532.00
2015-12-31 16,615.00 546.00 640.00
2015-09-30 16,304.00 1,289.00 676.00
2015-06-30 15,363.00 1,310.00 676.00
2015-03-31 15,254.00 952.00 676.00
2014-12-31 15,134.00 1,187.00 676.00
2014-09-30 15,343.00 50.00 762.00
2014-06-30 15,678.00 -1,804.00 615.00
2014-03-31 15,202.00 -1,215.00 762.00
2013-12-31 15,963.00 -838.00 747.00
2013-09-30 17,487.00 -128.00 668.00
2013-06-30 18,168.00 786.00 649.00
2013-03-31 17,320.00 59.00 668.00
2012-12-31 15,970.00 -1,471.00 668.00
2012-09-30 13,724.00 1,286.00 796.00
2012-06-30 12,571.00 1,157.00 752.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Lloyds Banking Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Lloyds Banking Group used its assets more efficiently than the GB Banks industry average last year based on Return on Assets.
  • Unable to establish if Lloyds Banking Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Lloyds Banking Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lloyds Banking Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

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

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Lloyds Banking Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lloyds Banking Group Company Filings, last reported 3 months ago.

LSE:LLOY Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 50,199.00 160,270.00 168,913.00
2018-09-30 47,700.00 0.00
2018-06-30 48,543.00 167,098.00 147,178.00
2018-03-31 49,143.00 150,124.00 146,273.00
2018-01-01 47,952.00 150,073.00 159,929.00
2017-09-30 49,202.00 116,523.00 252,699.00
2017-06-30 48,346.00 146,045.00 135,731.00
2017-03-31 50,112.00 125,306.00 255,118.00
2016-12-31 48,465.00 150,235.00 152,469.00
2016-09-30 48,847.00 149,242.00 274,060.00
2016-06-30 48,938.00 172,714.00 167,027.00
2016-03-31 49,037.00 143,246.00 237,832.00
2015-12-31 46,980.00 146,609.00 144,402.00
2015-09-30 49,002.00 137,327.00 237,202.00
2015-06-30 48,041.00 143,787.00 139,086.00
2015-03-31 49,750.00 140,947.00 246,982.00
2014-12-31 49,903.00 143,281.00 155,215.00
2014-09-30 47,702.00 135,306.00 233,360.00
2014-06-30 45,878.00 135,363.00 124,796.00
2014-03-31 40,964.00 142,967.00 228,108.00
2013-12-31 39,336.00 157,230.00 135,489.00
2013-09-30 41,225.00 174,103.00 237,510.00
2013-06-30 43,687.00 187,620.00 135,577.00
2013-03-31 43,481.00 195,927.00 261,622.00
2012-12-31 42,581.00 233,522.00 187,159.00
2012-09-30 45,933.00 223,224.00 289,999.00
2012-06-30 46,629.00 269,039.00 168,983.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Lloyds Banking Group has an acceptable proportion of non-loan assets held.
  • Lloyds Banking Group's liabilities are made up of primarily low risk sources of funding.
  • Loans at Lloyds Banking Group are broadly funded by customer deposits.
  • Lloyds Banking Group's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Lloyds Banking Group has a low allowance for bad loans.
  • Lloyds Banking Group has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Lloyds Banking Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lloyds Banking Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.87%
Current annual income from Lloyds Banking Group dividends. Estimated to be 5.47% next year.
If you bought £2,000 of Lloyds Banking Group shares you are expected to receive £97 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Lloyds Banking Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).
  • Lloyds Banking Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:LLOY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Banks Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 4.9%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:LLOY Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.04 3.00
2021-12-31 0.04 17.00
2020-12-31 0.04 19.00
2019-12-31 0.03 18.00
LSE:LLOY Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-02-25 0.032 5.075
2019-02-20 0.032 5.306
2018-03-09 0.031 5.074
2018-02-21 0.031 4.482
2017-07-27 0.032 4.789
2017-02-22 0.031 4.493
2016-02-25 0.030 4.891
2015-10-28 0.015 2.194
2015-07-31 0.015 1.953
2015-05-14 0.008 0.867
2010-05-13 0.000 0.000
2010-03-26 0.000 0.000
2010-02-26 0.000 0.000
2009-08-05 0.000 0.000
2009-04-22 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Lloyds Banking Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Lloyds Banking Group only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Lloyds Banking Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
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Income/ dividend checks
We assess Lloyds Banking Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lloyds Banking Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lloyds Banking Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Lloyds Banking Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
António de Sousa Horta-Osório
COMPENSATION £6,270,000
AGE 54
TENURE AS CEO 8.1 years
CEO Bio

Mr. Antonio Mota de Sousa Horta-Osório has been Group Chief Executive Officer at Lloyds Bank Plc, Lloyds Banking Group Plc, HBOS plc and Bank Of Scotland plc since March 1, 2011. Mr. de Sousa Horta-Osório served as the Chief Executive Officer of Alliance & Leicester plc from October 12, 2008 to December 1, 2010. Mr. Horta-Osório managed and led Alliance & Leicester on a day-to-day basis and made decisions on matters affecting the operation, performance and strategy of its business. He served as the Chief Executive Officer of Santander UK Plc at Banco Santander S.A and Banesto Banco Espanol de Credito SA from August 21, 2006 to December 1, 2010. He served as the Chief Executive Officer of Banco Santander Totta since 2000 and Abbey since 2006. He served as an Executive Vice President at Banco Santander S.A. Mr. de Sousa Horta-Osório joined Banco Santander S.A. in 1997 and served as its Executive Vice President of Portugal since June 2001. He served as the Chairman of Banco Santander Totta, S.A. until 2011 and its Chief Executive Officer from 2000 to 2006. He served as an Executive Vice President of Santander Totta at Banco Santander, S.A. He served as the Chief Executive Officer of Banco Santander Brazil 1997 to 1999. He started his career at Citibank Portugal, where he served as the Head of Capital Markets. He then worked for Goldman Sachs focusing on Corporate Finance Activities in Portugal. In 1993, he joined Grupo Santander as the Chief Executive Officer of Banco Santander de Negcios Portugal. Mr. de Sousa Horta-Osório serves as the Chairman at Banco Santander Portugal. Mr. de Sousa Horta-Osório has been an Executive Director of Lloyds Bank plc and Lloyds Banking Group Plc since January 17, 2011. He has been an Independent Non-Executive Director of Exor N.V. since May 29, 2015. He has been an Executive Director of HBOS Plc since March 1, 2011. He has been an Executive Director of Bank of Scotland Plc since January 17, 2011. He serves as a Non-Executive Director of Fundação Champalimaud in and a Governor of London Business School. From June 1, 2009 to February 28, 2011, he served as a Non-Executive Director of Bank of England since June 1, 2009 to February 28, 2011. He served as an Executive Director of Alliance & Leicester Plc from October 12, 2008 to December 1, 2010. He served as a Non-Executive Director at Abbey National plc from December 1, 2004 to August 2006. He served as an Executive Director of Santander UK plc from December 1, 2004 to December 1, 2010. He served as a Director of Santander Totta. In 2015, he was Chairman of the Wallace Collection by the Prime Minister. He serves as the Chairman of the Executive Committee of Banco Totta & Açores and Credito Predial Português. He was an Assistant Professor at the Universidade Catolica Portuguesa. In 2014, the Government of Portugal awarded him with the Order of Merit Grã-Cruz, which is the highest Order of Civil Merit. He was a Non-Executive Director of the Court of the Bank of England. He serves as Non-Executive Director of Sociedade Francisco Manuel dos Santos. He is a member of the Board of Stichting INPAR. In June 2011, he was awarded an Honorary Doctorate from the University of Edinburgh and the University of Warwick. He was awarded an Honorary Doctorate from the University of Bath in July 2012. Mr. de Sousa Horta-Osório holds Degree in Management and Business Administration from the Universidade Católica Portuguesa, MBA from INSEAD where he was awarded the Henry Ford II Prize. Mr. de Sousa Horta-Osório holds Advanced Management Program from Harvard Business School.

CEO Compensation
  • António's compensation has been consistent with company performance over the past year.
  • António's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Lloyds Banking Group management team in years:

2.7
Average Tenure
55
Average Age
  • The tenure for the Lloyds Banking Group management team is about average.
Management Team

António de Sousa Horta-Osório

TITLE
Group Chief Executive & Executive Director
COMPENSATION
£6M
AGE
54
TENURE
8.1 yrs

Mark George Culmer

TITLE
CFO & Executive Director
COMPENSATION
£3M
AGE
55
TENURE
6.9 yrs

Juan Colombás

TITLE
COO & Executive Director
COMPENSATION
£3M
AGE
55
TENURE
1.6 yrs

Markus Stadalmann

TITLE
Chief Investment Officer
TENURE
4.5 yrs

John Chambers

TITLE
Group Chief Information Officer
TENURE
0.8 yrs

Douglas Radcliffe

TITLE
Group Investor Relations Director

Kate Cheetham

TITLE
Group General Counsel
AGE
55
TENURE
1.8 yrs

Letitia Smith

TITLE
Group Director of Conduct

Matt Smith

TITLE
Head of Media Relations

Eduardo Stock da Cunha

TITLE
Head of Corporate Development & Head of Commercial Banking Market
AGE
55
TENURE
2.7 yrs
Board of Directors Tenure

Average tenure and age of the Lloyds Banking Group board of directors in years:

5
Average Tenure
57
Average Age
  • The tenure for the Lloyds Banking Group board of directors is about average.
Board of Directors

Norman Blackwell

TITLE
Chairman of the Board
COMPENSATION
£743K
AGE
65
TENURE
5 yrs

António de Sousa Horta-Osório

TITLE
Group Chief Executive & Executive Director
COMPENSATION
£6M
AGE
54
TENURE
8.3 yrs

Anita Frew

TITLE
Deputy Chairman & Senior Independent Director
COMPENSATION
£380K
AGE
61
TENURE
4.9 yrs

Mark George Culmer

TITLE
CFO & Executive Director
COMPENSATION
£3M
AGE
55
TENURE
6.9 yrs

Juan Colombás

TITLE
COO & Executive Director
COMPENSATION
£3M
AGE
55
TENURE
5.4 yrs

Simon Henry

TITLE
Independent Director
COMPENSATION
£182K
AGE
57
TENURE
4.8 yrs

Alan Dickinson

TITLE
Independent Director
COMPENSATION
£230K
AGE
68
TENURE
4.6 yrs

Stuart Sinclair

TITLE
Independent Director
COMPENSATION
£172K
AGE
64
TENURE
3.3 yrs

Sara Weller

TITLE
Independent Director
COMPENSATION
£199K
AGE
57
TENURE
7.2 yrs

Nick Prettejohn

TITLE
Independent Non-Executive Director
COMPENSATION
£449K
AGE
57
TENURE
4.8 yrs
Who owns this company?
Recent Insider Trading
  • Lloyds Banking Group insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
29. Mar 19 Sell Jennifer Tippin Individual 27. Mar 19 27. Mar 19 -272,953 £0.62 £-168,276
29. Mar 19 Sell Stephen Shelley Individual 26. Mar 19 26. Mar 19 -470,324 £0.62 £-289,520
29. Mar 19 Sell António de Sousa Horta-Osório Individual 27. Mar 19 27. Mar 19 -300,000 £0.62 £-185,190
08. Mar 19 Sell António de Sousa Horta-Osório Individual 07. Mar 19 07. Mar 19 -300,002 £0.63 £-188,911
25. Feb 19 Sell David J. Oldfield Individual 21. Feb 19 21. Feb 19 -930,000 £0.61 £-571,020
25. Feb 19 Sell Vimlesh Maru Individual 21. Feb 19 21. Feb 19 -900,000 £0.60 £-541,080
18. Dec 18 Buy James Roger Lupton Individual 17. Dec 18 17. Dec 18 200,000 £0.52 £104,720
19. Nov 18 Buy Simon Henry Individual 19. Nov 18 19. Nov 18 50,000 £0.55 £27,560
19. Nov 18 Buy Norman Blackwell Individual 16. Nov 18 16. Nov 18 50,000 £0.54 £27,050
18. Jun 18 Sell Mark George Culmer Individual 14. Jun 18 14. Jun 18 -73,075 £0.63 £-45,942
29. Oct 18 Buy James Roger Lupton Individual 26. Oct 18 26. Oct 18 250,000 £0.57 £142,925
21. Sep 18 Sell Zaka Mian Individual 19. Sep 18 19. Sep 18 -53,412 £0.60 £-32,106
21. Sep 18 Sell David J. Oldfield Individual 19. Sep 18 19. Sep 18 -118,385 £0.60 £-71,161
21. Sep 18 Sell Stephen Shelley Individual 19. Sep 18 19. Sep 18 -56,733 £0.60 £-34,102
21. Sep 18 Sell Juan Colombás Individual 19. Sep 18 19. Sep 18 -225,567 £0.60 £-135,588
21. Sep 18 Sell António de Sousa Horta-Osório Individual 19. Sep 18 19. Sep 18 -131,662 £0.60 £-79,142
18. Jun 18 Sell Jennifer Tippin Individual 14. Jun 18 14. Jun 18 -84,726 £0.63 £-53,267
18. Jun 18 Sell Zaka Mian Individual 14. Jun 18 14. Jun 18 -149,510 £0.63 £-93,997
18. Jun 18 Sell David J. Oldfield Individual 14. Jun 18 14. Jun 18 -174,367 £0.63 £-109,624
18. Jun 18 Sell Stephen Shelley Individual 14. Jun 18 14. Jun 18 -160,396 £0.63 £-100,841
18. Jun 18 Sell Karin Cook Individual 14. Jun 18 14. Jun 18 -47,104 £0.63 £-29,614
18. Jun 18 Sell Antonio Lorenzo Individual 14. Jun 18 14. Jun 18 -74,598 £0.63 £-46,900
18. Jun 18 Sell Juan Colombás Individual 14. Jun 18 14. Jun 18 -187,382 £0.63 £-117,807
18. Jun 18 Sell Janet Pope Individual 14. Jun 18 14. Jun 18 -82,683 £0.63 £-51,983
18. Jun 18 Sell António de Sousa Horta-Osório Individual 14. Jun 18 14. Jun 18 -402,566 £0.63 £-253,093
18. Jun 18 Buy António de Sousa Horta-Osório Individual 14. Jun 18 14. Jun 18 189,697 £0.63 £119,244
X
Management checks
We assess Lloyds Banking Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lloyds Banking Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Lloyds Banking Group plc's (LON:LLOY) 8.45% ROE Strong Compared To Its Industry?

and want to learn about Return on Equity using a real-life example. … If LLOY borrows debt to invest in its business, its profits will be higher. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface

Simply Wall St -

Why Lloyds Banking Group plc’s (LON:LLOY) Risk Control Makes It Attractive

As a UK£45.04b market capitalisation company operating in the financial services sector, Lloyds Banking Group plc (LON:LLOY) has benefited from strong economic growth and improved credit quality as a result of post-GFC recovery. … Growth stimulates demand for loans and impacts a borrower’s ability to repay which directly affects the level of risk Lloyds Banking Group takes on. … It is relevant to understand a bank’s level of risky assets on its accounts as it affects the attractiveness of its stock as an investment.

Simply Wall St -

Is Lloyds Banking Group plc's (LON:LLOY) PE Ratio A Signal To Sell For Investors?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to begin learning the link between Lloyds Banking Group plc (LON:LLOY)’s fundamentals and stock market performance. … Lloyds Banking Group plc (LON:LLOY) trades with a trailing P/E of 11.6x, which is higher than the industry average of 11.6x.

Simply Wall St -

Spotlight On Lloyds Banking Group plc's (LON:LLOY) Fundamentals

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … In the case of Lloyds Banking Group plc (LON:LLOY), it

Simply Wall St -

Financial Metrics For Lloyds Banking Group plc (LON:LLOY)

Lloyds Banking Group plc (LON:LLOY) is a large-cap stock operating in the financial services sector with a market cap of UK£45.70b. … As major financial institutions return to health after the Global Financial Crisis, we are seeing an increase in market confidence, and understanding of, these “too-big-to-fail” banking stocks. … These reforms target banking regulations and intends to enhance financial institutions’ ability to absorb shocks resulting from economic stress which could expose banks to vulnerabilities.

Simply Wall St -

Is Lloyds Banking Group plc (LON:LLOY) A Buy At Its Current PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for LLOY Price per share = £0.66 Earnings per share = £0.053 ∴ Price-Earnings Ratio = £0.66 ÷ £0.053 = 12.4x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … LLOY’s P/E of 12.4x is lower than its industry peers (15.5x), which implies that each dollar of LLOY’s earnings is being undervalued by investors. … For example, if you inadvertently compared lower risk firms with LLOY, then investors would naturally value LLOY at a lower price since it is a riskier investment.

Simply Wall St -

Is It Too Late To Buy Lloyds Banking Group plc (LON:LLOY)?

Lloyds Banking Group plc (LSE:LLOY) maintained its current share price over the past couple of month on the LSE, with a relatively tight range of £0.64 to £0.7. … Another thing to keep in mind is that Lloyds Banking Group’s share price is quite stable relative to the rest of the market, as indicated by its low beta. … This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

Simply Wall St -

Lloyds Banking Group plc (LON:LLOY): What You Have To Know Before Buying For The Upcoming Dividend

Check out our latest analysis for Lloyds Banking Group Here's how I find good dividend stocks If you are a dividend investor, you should always assess these five key metrics: Does it pay an annual yield higher than 75% of dividend payers? … LSE:LLOY Historical Dividend Yield Apr 11th 18 Does Lloyds Banking Group pass our checks? … Lloyds Banking Group has a trailing twelve-month payout ratio of 62.60%, which means that the dividend is covered by earnings.

Simply Wall St -

What You Should Know About Lloyds Banking Group plc’s (LON:LLOY) Liquidity

These reforms target bank level regulation and aims to improve the banking sector’s ability to absorb shocks arising from economic stress which could expose financial institutions to vulnerabilities. … Though banks are required to have a certain level of buffer to meet its capital requirements, Lloyds Banking Group’s leverage level of less than the suitable maximum level of 20x, at 17x, is considered to be very cautious and prudent. … Relative to the prudent industry loan to deposit level of 90%, Lloyds Banking Group’s ratio of over 108.71% is higher, which positions the bank in a risky spot given the adverse liquidity disparity between loan and deposit levels.

Simply Wall St -

Lloyds Banking Group plc (LON:LLOY) Is Undervalued By 36%

Emphasizing data points such as book values, on top of the return and cost of equity, can be useful for determining LLOY’s intrinsic value. … The returns in excess of cost of equity is called excess returns: Excess Return Per Share = (Stable Return On Equity – Cost Of Equity) (Book Value Of Equity Per Share) = (12.18% – 8.30%) * £0.64 = £0.02 We use this value to calculate the terminal value of the company, which is how much we expect the company to continue to earn every year, forever. … This is a common component of discounted cash flow models: Terminal Value Per Share = Excess Return Per Share / (Cost of Equity – Expected Growth Rate) = £0.02 / (8.30% – 1.49%) = £0.36 Combining these components gives us LLOY's intrinsic value per share: Value Per Share = Book Value of Equity Per Share + Terminal Value Per Share = £0.64 + £0.36 = £1 Relative to the present share price of £0.65, LLOY is priced below its intrinsic value.

Simply Wall St -

Company Info

Description

Lloyds Banking Group plc provides banking and financial services under the Lloyds Bank, Halifax, Bank of Scotland, and Scottish Widows brands in the United Kingdom and internationally. It operates through three segments: Retail, Commercial Banking, and Insurance and Wealth. The Retail segment offers a range of financial service products, including current accounts, savings accounts, mortgages, motor finance, unsecured consumer loans, leasing solutions, and credit cards to personal and small business customers. The Commercial Banking segment provides lending, transactional banking, working capital management, risk management, term lending, and debt capital markets services to small and medium-sized enterprises, corporates, mid markets, and financial institutions. The Insurance and Wealth segment offers life, home, car, and protection insurance products; pensions and investment products; and advisory services in areas, including investments, planning for retirement, and protection and inheritance tax planning. The company also provides digital, telephony, and mobile services. Lloyds Banking Group plc was founded in 1695 and is headquartered in London, the United Kingdom.

Details
Name: Lloyds Banking Group plc
LLOY
Exchange: LSE
Founded: 1695
£46,737,388,077
70,921,681,453
Website: http://www.lloydsbankinggroup.com
Address: Lloyds Banking Group plc
25 Gresham Street,
London,
Greater London, EC2V 7HN,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE LLOY Ordinary Shares London Stock Exchange GB GBP 01. Sep 1987
OTCPK LLDT.F Ordinary Shares Pink Sheets LLC US USD 01. Sep 1987
DB LLD Ordinary Shares Deutsche Boerse AG DE EUR 01. Sep 1987
XTRA LLD Ordinary Shares XETRA Trading Platform DE EUR 01. Sep 1987
SWX LLOY Ordinary Shares SIX Swiss Exchange CH CHF 01. Sep 1987
BATS-CHIXE LLOYL Ordinary Shares BATS 'Chi-X Europe' GB GBP 01. Sep 1987
NYSE LYG ADR REP 4 ORD GBP0.10(BNY) New York Stock Exchange US USD 27. Nov 2001
DB A1ZENQ 7%-FRN PERP GBP200000 'AT1' 'REGS' Deutsche Boerse AG DE GBP 20. Mar 2014
DB A1ZEN0 6.375%-FRN PERP EUR200000 'PNC6' 'REGS' Deutsche Boerse AG DE EUR 20. Mar 2014
DB A1ZEN1 7.625%-FRN PERP GBP200000 'PNC9' 'REGS' Deutsche Boerse AG DE GBP 20. Mar 2014
DB A1ZEN2 7.875%-FRN PERP GBP200000 'PNC15' 'REGS' Deutsche Boerse AG DE GBP 20. Mar 2014
DB LLD2 ADR REP 4 ORD GBP0.10(BNY) Deutsche Boerse AG DE EUR 27. Nov 2001
LSE ELB9 7.875%-FRN PERP GBP200000 'PNC15' 'REGS' London Stock Exchange GB GBP 20. Mar 2014
LSE LLD6 ADR REPR 1/100 6.657% NON CUM PRF 144A London Stock Exchange GB USD 23. Jan 2009
BMV LYG N ADR REP 4 ORD GBP0.10(BNY) Bolsa Mexicana de Valores MX MXN 27. Nov 2001
Number of employees
Current staff
Staff numbers
64,928
Lloyds Banking Group employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/21 20:37
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/02/25
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.