Financial expert Edmund Shing explains why now is the perfect time to invest in UK financial institution Lloyds Banking Group.

1) FTSE 100 company

Lloyds is a FTSE 100 company (UK code: LLOY) in the banking sector.

2) Profit growth

Profit growth has been relatively robust for Lloyds Banking Group and should continue to be strong. This is driven by their retail banking business, in particular the demand for residential mortgages as people buy houses and flats.

3) It's cheap

According to Stockopedia the forward P/E Ratio for Lloyds is 0.09, which is much cheaper than the average company in the FTSE 100 Index.

4) Attractive level of income

Lloyds also poses an attractive level of income for investors, with a divided yield of 6.4%, far higher than the average UK stock.

5) Higher price target

Finally, the average analyst price target for Lloyds is some 20% above the current share price of 70p.

Edmund Shing is Global Head of Equity Derivative Strategy at BNP Paribas in London. He holds a PhD in Artificial Intelligence.