Lloyds investors left disappointed by 2023 forecast

CHRIS DORRELL

LLOYDS Bank yesterday reported that higher interest rates offset the money set aside to cope with loan defaults during the final quarter of 2022, but disappointed the market with yet more conservative guidance on net interest margin for 2023.

Lloyds recorded a pretax profit of £1.8bn during the quarter, in line with company-compiled consensus and over 80 per cent higher than the same quarter last year.

The bank’s profit for the full year 2022 totalled £6.9bn, roughly flat on the previous year while revenue in the final quarter climbed to £5bn, mainly as a result of higher net interest income.

On the back of the results, Lloyds said it will pay a final dividend of 1.60p per share, bringing the total dividend to 2.40p per share, up 20 per cent on last year.

The bank also announced a buyback programme worth £2bn.

After a decade of ultralow interest rates, sharp