Lloyds Banking Group (LLOY.L) is on the way to full recovering from the crisis in the last few years according to the newly submitted report of the bank status.
One of Britain’s largest banking groups declared a pretax profit of £4.2 billion which is more than double compared to the last year’s £1.64 billion. This is also the highest profit in a decade and helps the bank shares to raise by 4%. The successful revenue of this year is also aiding the British government to restore the status of the bank to full private ownership. The process is expected to be completed in a few months and it will end the 9-year government intervention since the bank has been rescued with taxpayer bailout of £20.5 billion in 2008. Currently the government stake share is just below 5% and despite that is selling its shares below the average prices the numbers shows that about £18.5 billion are received back. “Given our UK focus, our performance is inextricably linked to the health of the UK economy which has been more resilient than the market expected post referendum, with GDP growth of 2% in 2016,” commented the Bank’s chief executive Antonio Horta-Osorio.
The good news from Lloyds Bank as well the positive updates from Telefonica Deutschland and Scor are influencing the pan-European STOXX 600 index which hits its 14-month high with 375.19 this morning. Currently, banking and insurance stocks are the best performing of all European sectors.