Lloyds Banking Group PLC (LSE:LLOY)’s third-quarter numbers were a relief compared to Barclays, according to analysts at Bank of America, especially the reiteration of margins and steady deposit performance.
“This should support strong profitability, in turn translating into attractive capital distributions, particularly with the pension deficit now substantially closed,“said the bank.
BofA highlighted the better-than-expected bad debt provision and strong capital position, with the CET1 ratio rising to 14.6%.
On a five times PE ratio for 2024, Lloyds looks undervalued concludes the bank, which reiterated its 'buy' rating.
Shares rose 1.7% to 41.3p.