4. Lloyds Banking Group (LYG) is a U.K.-based financial services company operating in the retail, wholesale, international banking and insurance segments.
New lending subdued during 2010, although gross mortgage lending increased. Loans and advances and customer deposits declined marginally in 2010, compared to 2009.
Total income was flat in 2010, while net earnings experienced a turnaround. Net profit stood at $3.6 billion against a net loss of $10.3 billion in 2009. The company's cost-to-income ratio improved to 46.6% from 48.4% in 2009, narrowing 220 basis points.Although higher funding costs piled pressure, prudent lending improved net interest margin to 2.1% from 1.77% in 2009. The management expects modest margin expansion for the second half of 2010. On average, analysts expect the stock to gain 61% over the next one year.