Lloyds continues to show signs of recovery but investors advised to ‘hold'

As Lloyds reports Q1 results Graham Spooner, investment research analyst at The Share Centre, explains why he recommends investors to ‘hold'.

"Lloyds showed continued signs of recovery in its Q1 results this morning with underlying profits ahead of analyst expectations. Although some investors may be encouraged by the announcement they should be aware that the bank still has a long way to go and any recovery is from a very low base.
 
"The group is starting to benefit from its long term restructuring plans with profits driven by cost cutting and a fall in impairment charges. Management remains confident that it is on track to meet its existing guidance for the year.
 
"We have long warned investors that there is no quick fix for the bank or for the sector and regulatory issues are another pressure that is causing uncertainty.
 
"Investors with a longer term view may see some value in Lloyds, however there is no signs of a dividend for those long suffering investors that have stuck with the bank. We continue to recommend investors ‘hold' Lloyds for now."