lloyds banking group plc on wednesday reported a rise in fourthquarter pretax profit slightly short of consensus expectations issued guidance for 2023 and updated its 2024 and 2026 targets pretax profit forecast the uk bank posted a pretax profit of 176 billion pounds 213 billion against the gbp178 billion expected for the quarter by a companycompiled consensus this compares with gbp968 million for the same period a year earlier net income forecast the ftse 100listed lender closed the three months to dec 31 with a net income of gbp500 billion beating the gbp469 billion anticipated by consensus net interest income was gbp364 billion above the gbp355 billion forecast cet1 ratio the banks common equity tier 1 ratioa key measure of balancesheet strengthstood at 141 proforma against consensus of 142 rote the lenders return on tangible equity at the end of the year was 135 above the 128 expected by consensus it guided for a rote of around 13 for 2023 and 2024 and greater than 15 by 2026 raised from the previously communicated target of above 10 for 2024 and exceeding 12 in 2026 net interest margin it closed the quarter with a 322 net interest margin the group guided for a margin of 305 for 2023 below analysts expectation of 315 costs and impairments lloydss fourthquarter costs including operating costs and remediation were gbp257 billion heavier than the expected gbp247 billion while fullyear costs reached gbp909 billion above consensus of gbp899 billion the group guided for operating costs in 2023 of gbp91 billion rising to gbp92 billion in 2024 it kept its costtoincome ratio target of less than 50 by 2026 capital returns lloyds proposed a dividend of 160 pence a share bringing the fullyear payout to 240 pence as expected by consensus and a fifth higher than the previous year it said it intends to launch an up to gbp2 billion share buyback