LSE:LLOY

Stock Analysis Report

Lloyds Banking Group

Executive Summary

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.

Snowflake

Fundamentals

Excellent balance sheet, good value and pays a dividend.


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


Market Performance


7 Day Return

0.3%

LSE:LLOY

-3.9%

GB Banks

-1.7%

GB Market


1 Year Return

-17.5%

LSE:LLOY

-17.6%

GB Banks

-5.7%

GB Market

LLOY outperformed the Banks industry which returned -18.5% over the past year.

LLOY underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.8% over the past year.


Share holder returns

LLOYIndustryMarket
7 Day0.3%-3.9%-1.7%
30 Day-13.5%-12.2%-4.6%
90 Day-17.7%-11.6%-3.2%
1 Year-12.7%-17.5%-12.4%-17.6%-1.3%-5.7%
3 Year4.8%-10.1%12.3%-1.7%17.8%4.0%
5 Year-19.0%-34.9%-9.3%-26.9%26.9%0.2%

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 based on future cash flows and its price relative to the stock market?

46%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Lloyds Banking Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Lloyds Banking Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

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

Lloyds Banking Group is poor value based on expected growth next year.


Price Based on Value of Assets

Lloyds Banking Group is good value based on assets compared to the GB Banks industry average.


Next Steps

Future Growth

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

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Lloyds Banking Group's revenue is expected to grow by 0.2% yearly, however this is not considered high growth (20% yearly).

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 growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

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 earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Lloyds Banking Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

44.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 negative, it can't be compared to the 5-year average.

Lloyds Banking Group's 1-year earnings growth is negative, it can't be compared to the GB Banks industry average.


Return on Equity

Lloyds Banking Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Lloyds Banking Group used its assets less efficiently than the GB Banks industry average last year based on Return on Assets.


Return on Capital Employed

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.


Next Steps

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

Lloyds Banking Group has an acceptable proportion of non-loan assets held.

Lloyds Banking Group has a low allowance for bad loans.

Lloyds Banking Group's liabilities are made up of primarily low risk sources of funding.

Lloyds Banking Group's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at Lloyds Banking Group are broadly funded by customer deposits.

Lloyds Banking Group has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

7.48%

Expected Dividend Yield


Dividend Yield and Payments Analysis

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 (2.09%).

Lloyds Banking Group's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.76%).

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

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 (2x coverage).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

António de Sousa Horta-Osório (55yo)

8.4yrs

Tenure

UK£6,270,000

Compensation

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  ...


CEO Compensation Analysis

António's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

António's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.5yrs

Average Tenure

56yo

Average Age

The tenure for the Lloyds Banking Group management team is about average.


Board Age and Tenure

5.3yrs

Average Tenure

58yo

Average Age

The tenure for the Lloyds Banking Group board of directors is about average.


Insider Trading

Lloyds Banking Group individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUK£32,00007 Aug 19
Amanda Mackenzie
EntityIndividual
Shares63,567
Max PriceUK£0.50
SellUK£3,561,07602 Aug 19
António de Sousa Horta-Osório
EntityIndividual
Role
Group Chief Executive & Executive Director
Member of the Board of Directors
Shares6,750,000
Max PriceUK£0.53
SellUK£1,573,82528 Jun 19
Antonio Lorenzo
EntityIndividual
Shares2,750,000
Max PriceUK£0.57
SellUK£211,99828 Jun 19
António de Sousa Horta-Osório
EntityIndividual
Role
Group Chief Executive & Executive Director
Member of the Board of Directors
Shares374,554
Max PriceUK£0.57
BuyUK£222,85721 May 19
Stuart Sinclair
EntityIndividual
Role
Member of the Board of Directors
Shares362,664
Max PriceUK£0.61
SellUK£168,27629 Mar 19
Jennifer Tippin
EntityIndividual
Shares272,953
Max PriceUK£0.62
SellUK£185,19029 Mar 19
António de Sousa Horta-Osório
EntityIndividual
Role
Group Chief Executive & Executive Director
Member of the Board of Directors
Shares300,000
Max PriceUK£0.62
SellUK£289,52029 Mar 19
Stephen Shelley
EntityIndividual
Shares470,324
Max PriceUK£0.62
SellUK£188,91108 Mar 19
António de Sousa Horta-Osório
EntityIndividual
Role
Group Chief Executive & Executive Director
Member of the Board of Directors
Shares300,002
Max PriceUK£0.63
SellUK£541,08025 Feb 19
Vimlesh Maru
EntityIndividual
Shares900,000
Max PriceUK£0.60
SellUK£571,02025 Feb 19
David J. Oldfield
EntityIndividual
Shares930,000
Max PriceUK£0.61
BuyUK£104,72018 Dec 18
James Roger Lupton
EntityIndividual
Shares200,000
Max PriceUK£0.52
BuyUK£27,56019 Nov 18
Simon Henry
EntityIndividual
Role
Member of the Board of Directors
Shares50,000
Max PriceUK£0.55
BuyUK£27,05019 Nov 18
Norman Blackwell
EntityIndividual
Role
Chairman of the Board
Shares50,000
Max PriceUK£0.54
BuyUK£142,92529 Oct 18
James Roger Lupton
EntityIndividual
Shares250,000
Max PriceUK£0.57
SellUK£135,58821 Sep 18
Juan Colombás
EntityIndividual
Role
COO & Executive Director
Member of the Board of Directors
Shares225,567
Max PriceUK£0.60
SellUK£32,10621 Sep 18
Zaka Mian
EntityIndividual
Shares53,412
Max PriceUK£0.60
SellUK£71,16121 Sep 18
David J. Oldfield
EntityIndividual
Shares118,385
Max PriceUK£0.60
SellUK£34,10221 Sep 18
Stephen Shelley
EntityIndividual
Shares56,733
Max PriceUK£0.60
SellUK£79,14221 Sep 18
António de Sousa Horta-Osório
EntityIndividual
Role
Group Chief Executive & Executive Director
Member of the Board of Directors
Shares131,662
Max PriceUK£0.60

Ownership Breakdown


Management Team

  • Juan Colombás (56yo)

    COO & Executive Director

    • Tenure: 1.9yrs
    • Compensation: £3.27m
  • William Leon Chalmers (51yo)

    CFO & Executive Director

  • Markus Stadalmann

    Chief Investment Officer

    • Tenure: 4.8yrs
  • Letitia Smith

    Group Director of Conduct

  • Kate Cheetham (56yo)

    Company Secretary & Group General Counsel

    • Tenure: 2.1yrs
  • Matt Smith

    Head of Media Relations

  • António de Sousa Horta-Osório (55yo)

    Group Chief Executive & Executive Director

    • Tenure: 8.4yrs
    • Compensation: £6.27m
  • Eduardo Stock da Cunha (56yo)

    Head of Corporate Development & Head of Commercial Banking Market

    • Tenure: 3.0yrs
  • Douglas Radcliffe

    Group Investor Relations Director

  • John Chambers

    Group Chief Information Officer

    • Tenure: 1.2yrs

Board Members

  • Juan Colombás (56yo)

    COO & Executive Director

    • Tenure: 5.8yrs
    • Compensation: £3.27m
  • Stuart Sinclair (65yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: £172.00k
  • Nick Prettejohn (58yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: £449.00k
  • William Leon Chalmers (51yo)

    CFO & Executive Director

  • Norman Blackwell (66yo)

    Chairman of the Board

    • Tenure: 5.3yrs
    • Compensation: £743.00k
  • António de Sousa Horta-Osório (55yo)

    Group Chief Executive & Executive Director

    • Tenure: 8.6yrs
    • Compensation: £6.27m
  • Sara Weller (58yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: £199.00k
  • Alan Dickinson (69yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: £230.00k
  • Anita Frew (62yo)

    Deputy Chairman & Senior Independent Director

    • Tenure: 5.3yrs
    • Compensation: £380.00k
  • Simon Henry (58yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: £182.00k

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£34.894b
  • Shares outstanding: 70.28b
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LLDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1987
LLOYLSE (London Stock Exchange)YesOrdinary SharesGBGBPSep 1987
LLDXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURSep 1987
LLDT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 1987
LLOYSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFSep 1987
LLOYLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPSep 1987
A1ZEN2DB (Deutsche Boerse AG)7.875%-FRN PERP GBP200000 'PNC15' 'REGS'DEGBPMar 2014
A1ZEN1DB (Deutsche Boerse AG)7.625%-FRN PERP GBP200000 'PNC9' 'REGS'DEGBPMar 2014
LLD2DB (Deutsche Boerse AG)SPONSORED ADRDEEURNov 2001
ELB9LSE (London Stock Exchange)7.875%-FRN PERP GBP200000 'PNC15' 'REGS'GBGBPMar 2014
LLD1LSE (London Stock Exchange)6.413%-FRN PERP USD100000 'REGS'GBUSDOct 2012
LLD6LSE (London Stock Exchange)ADR REPR 1/100 6.657% NON CUM PRF 144AGBUSDJan 2009
LYGBASE (Buenos Aires Stock Exchange)CEDAR EACH REP 0.5 ADRARARSFeb 2004
LYG NBMV (Bolsa Mexicana de Valores)SPONSORED ADRMXMXNNov 2001
LYGNYSE (New York Stock Exchange)SPONSORED ADRUSUSDNov 2001
A1ZEN0DB (Deutsche Boerse AG)6.375%-FRN PERP EUR200000 'PNC6' 'REGS'DEEURMar 2014

Biography

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 20:36
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.