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Lloyds Banking Group plc (NYSE:LYG ) Q4 2024 Earnings Conference Call February 20, 2025 4:30 AM ET Company Participants Charlie Nunn - Executive Director and Group Chief Executive William Chalmers - Executive Director and CFO Douglas Radcliffe - Group IR Director Conference Call Participants Benjamin Toms - RBC Perlie Mong - Bank of America Jonathan Pierce - Jefferies Ben Caven Roberts - Goldman Sachs Chris Cant - Autonomous Amit Goel - Mediobanca Charlie Nunn Good morning, everyone. And thank you for joining our 2024 Full Year Results Presentation at our brilliant new London Headquarters.

Lloyds Banking Group PLC's move to set aside further funds to cover a potential hit from a probe into historic motor finance commission deals did little to deter investors on Thursday. Shares jumped 7.0% in the wake of full-year figures, where it said an additional £700 million provision had been made in the fourth quarter to cover possible remuneration.

Lloyds Banking Group PLC saw profit drop by a fifth last year and set aside hundreds of millions in the final quarter to cover a potential hit from motor finance mis-selling. Statutory pre-tax profit tumbled 20% to £5.97 billion in the year to December 31, the lender said Thursday, against company-compiled consensus expectations for £6.39 billion.

Lloyds Banking Group reported a 20.4% drop in annual profit on Thursday, missing market expectations, as interest rate cuts hit lending margins and Britain's sluggish economic recovery hurt the bank's income.

Shares in British lenders Close Brothers and Lloyds Banking group fell on Monday, with traders and analysts citing reports that the Treasury has been blocked from intervening into the Supreme Court review of the motor finance misselling case.

Lloyds Banking Group PLC (LSE:LLOY) reports final results on Thursday 20 February, with the lender's shares up over 50% in the past 12months to almost a six-year high. However, they have been lagging in analyst affections in recent months, with the cloud of a large potential hit from motor finance commission looming - though some have hopes that things will not be as bad as expected.

Lloyds share price is firing on all cylinders as the countdown to its fourth-quarter and annual earnings report continue. LLOY has risen in the last five straight weeks and is hovering at its highest level since 2008.

Ahead of the start of the UK bank reporting season, analysts at Citi said their top pick in the sector is NatWest Group PLC (LSE:NWG) and their least preferred is Lloyds Banking Group PLC (LSE:LLOY). Heading into the final results for 2024, which start with Barclays on Thursday and NatWest this Friday, the analysts said the UK economic outlook "looks far from rosy, with fears of stagflation growing".

Could there be some respite for Lloyds Banking Group PLC (LSE:LLOY), Close Brothers Group PLC (LSE:CBG) and the other smaller players saddled with a potential £30 billion bill for alleged motor finance mis-selling? Next month will see the start of a Supreme Court appeal hearing hoping to overturn an earlier, potentially costly ruling.

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