NEW YORK (TheStreet) -- Shares of Lloyds Banking Group Plc (LYG) are up 3.87% to $5.37 in pre-market trade after reporting that first quarter adjusted profit increased by 22%, putting it in a strong position to start paying dividends again after a six year absence, according to the Wall Street Journal.
Adjusted profit before tax was 1.8 billion pounds, or $3.04 billion, from 1.48 billion pounds in the same quarter of 2013.
The adjusted figures strip out one-off costs and provisions.
Net profit for the quarter was 1.15 billion pounds, down from 1.53 billion pounds in the same three months last year, when the bank made a 776 million pound one-off gain by selling most of its gilts portfolio, the Journal noted.
The adjusted profit figure met analysts' expectations of about 1.8 billion pounds.
TheStreet Ratings team rates LLOYDS BANKING GROUP PLC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LLOYDS BANKING GROUP PLC (LYG) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, expanding profit margins and notable return on equity. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive."