Lloyds Raises Guidance But Braces for More Bad Loans

The video discusses the contrast between guidance and reported financial performance, highlighting increased guidance on return on tangible equity and net interest margins. Despite higher impairment charges in Q2, the financial performance remains robust. The speaker emphasizes confidence in the strategy and commitment to growth targets for 2024 and 2026. The discussion also covers the resilience of credit performance and economic adjustments made in response to updated economic scenarios, predicting modest growth and higher unemployment by 2025.

What was the main reason for missing estimates in the second quarter?

• Lower net interest margins

• Increased operational costs

• Higher impairment charges

• Decreased return on tangible equity

What is the company's outlook for the second part of 2023?

• Lowering guidance

• Maintaining current guidance

• Raising guidance

• No change in strategy

What is the company's strategy focus for 2024 and 2026?

• Increasing dividends

• Reducing costs

• Expanding into new markets

• Growing the organization and supporting customers

How did the underlying impairments for Q2 compare to the guidance?

• Not specified

• Below guidance

• In line with guidance

• Above guidance

What is the economic outlook for 2023 according to the company?

• Stagnant economy

• Significant economic decline

• Modest growth is expected

• A recession is expected