Lloyds Banking Group (LLOY.UK), U.K.'s third-biggest banking group, posted fourth quarter earnings of £792 million ($1.12 billion) well above analysts' expectations of £471 million. It also reinstated its dividend payment at £0.57 pence a share, the maximum allowed by the current regulations. “We’ve seen business momentum improve in the latter half of 2020," chief finance officer William Chalmers said on a media call.
However profits were down more than 70% year-over-year partially due to provisions for credit losses, related to the ongoing pandemic. Last year the bank set aside £4.2bn to cover an expected spike in bad loans, including a £128m charge in the fourth quarter while markets expected £4.7bn in impairments for the year. On the positive, Lloyds recorded strong mortgage and deposit growth. A temporary stamp duty holiday spurred a boom in the UK property market and Lloyds grew its house lending business by over £7bn.
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Lloyds Banking Group (LLOY.UK) launched today’s session higher, however buyers failed to break above the major resistance at £0.4083 and price pulled back towards lower limit of the ascending channel. Should a break below occur, downward move could be extended to the £0.3581 handle or even £0.3186 level which coincides with 200 SMA (red line). Source: xStation5
