Proactive Investors - Lloyds (LON:LLOY) put in a stronger performance than feared post-Barclays in deposit volumes and pricing, said UBS, with net interest margin guidance maintained looks to be undervalued at current levels.
The Swiss bank said it expects NIM to fall more slowly in the first half of 2024 before stabilising in the remainder of the year.
After the update, UBS said it expects a 5% reduction to consensus earnings per share (EPS) but sees Lloyds as more cash generative - and more stable - than a rating of six times 2024 adjusted earnings suggests.
UBS added that its estimates are broadly unchanged as is its 'buy' rating and 50p share price target.
Shares today were down 0.8% at 41.1p.