Lloyds Banking Group PLC (LYG) stock soared 5.1% in pre-market trading on Thursday, as investors reacted positively to the British bank's latest financial update.
Jefferies analyst Jonathan Pierce and associate Priya Rathod noted that Lloyds' results included "comforting" figures, though there were many components to digest. They highlighted that the bank took a provision related to its motor finance business but issued positive guidance for 2025 and maintained its upbeat 2026 outlook above consensus estimates.
The analysts expect the market to take comfort from Lloyds' guidance that hedge income is projected to increase by around £2.7 billion between 2024 and 2026. However, they cautioned that risks related to the motor finance business may continue weighing on the shares in the near-term.