Lloyds Banking Group (LON:LLOY) is changing the way it reports some of its key numbers ahead of its annual results next month, Bloomberg has revealed. The bailed-out lender is due to report its full-year numbers on February 21 when it is also set to provide a strategic update.
Lloyds’ share price lost ground in the previous session, giving up 1.44 percent to close at 70.52p. The decline was largely in line with a selloff in the broader London market, with the benchmark FTSE 100 index ending the session 1.09 percent lower at 7,587.98 points.
Bloomberg reported yesterday that according to a memo sent to investors, Lloyds, which returned to full private ownership last year, was set to merge the earnings of its consumer finance unit, whose assets increased by 12 percent to £39.2 billion, with the retail division.
The lender explained in the memo that the changes were “implemented to align and strengthen the group’s organisational structure” following a management reshuffle announced in July.
Bloomberg further noted that analysts thought that the new reporting structure might make it harder for investors to see whether the consumer finance unit has suffered a deterioration in credit quality, or build-up of bad loans.
“Less granularity always means less visibility,” Gary Greenwood, an analyst at Shore Capital, told the newswire in an email. “Big banks seem to have a habit of restating their divisional numbers every other year, which makes any sort of trend analysis impossible.”
The news comes after analysts at Jefferies reaffirmed their ‘buy’ rating on Lloyds this week, pointing to the potential for the UK bulk annuity market to boost the bailed-out lender’s earnings through its Scottish Widows insurance business.