Shares in Lloyds Banking Group PLC (LSE:LLOY) failed to really respond to the company’s better-than-expected first-quarter results and an upgrade to guidance.
At one point they were 2% higher, before subsiding back to 1.3% ahead, which, on the face of it, appeared a little mean-spirited of the market’s price setters.
Earlier, the high street lender told investors underlying profit for the three months ended March 31 grew by 26% to £2bn. Statutory profit was £1.2bn, down £200mln on the year earlier.
Broker Jefferies said both the pre- and post-provision results were 14% ahead of consensus.
Going forward, it said it expects its net interest margin to be above 2.7% (up at least 0.1% on the previous forecast), while its return on equity is now set to be greater than 11% (previously targeted to be 10%).
In earlier afternoon trading the stock was up 0.62p at 46.5p.
Jefferies, which rates Lloyds shares ‘buy’, reckons they are worth 65p.