LLOBF - Lloyds Banking Group: Tariff Uncertainty Creeps Into Q1 Results

2025-05-03 03:40:52 ET

Summary

• Shares of Britain's Lloyds Banking Group have been an exceptional performer so far in 2025, returning over 40%.
• Lloyds' first quarter was arguably a little mixed, with stronger than expected net interest income offset by slightly weaker costs.
• Within that, provisioning was a little higher than consensus, with management booking a £100 million overlay to capture possible risks from tariffs.
• Despite this, 2025 and 2026 guidance both remain unchanged, and that means a single-digit P/E ratio for today's buyer.

For now, tariff turmoil hasn't been enough to dent Lloyds Banking Group's ( LYG ) fine year-to-date run. Like the broader European financials space, these shares have been an excellent performer so far this year, returning north of 40% for investors. That includes a nice ~15% return since my last update in February, with ADS holders benefiting from a significant weakening of the dollar in that time....

For further details see: