Lloyds Banking seen as winner by Credit Suisse if interest rates rise
Rates are expected to remain negative in Europe until 2026 but the BoE might hike much sooner
Company
LON:LLOY
Lloyds Banking Group has many household names like Lloyds Bank, Halifax, Bank of Scotland and Scottish Widows. Lloyds Banking Group is a leading UK based financial services group providing a wide range of banking and financial services, focused on personal and commercial customers. The Group’s main business activities are retail, commercial and corporate banking, general insurance, and life, pensions and investment provision. The Group operates the UK’s largest retail bank and has a large and diversified customer base.
1370 stories · page 32 of 69
Rates are expected to remain negative in Europe until 2026 but the BoE might hike much sooner
Archive
It's old Mother Hubbard day in the stock market on Friday so thank heavens for the Halifax house price index, which will give traders something to chew on
Record savings inflows continue and asset quality remains benign
The investment bank said that while Lloyds had underperformed the most within the pure-play domestic UK banks over the last year, most of the concerns around the stock were now “in consensus expectations” and that higher front book rates ar
Lloyds Banking chief executive, António Horta-Osório, has some sorting out to do when he becomes chairman of Credit Suisse. Closer to home, the Greensill collapse is a headache for Liberty Steel.
There were upgrades for Barclays, NatWest and HSBC, while StanChart was downgraded
Barclays has an ‘overweight’ rating on Lloyds, with a new CEO also possibly instigating strategic action to boost returns.
The pledge is being coordinated by Institutional Investors Group on Climate Change, which has laid out a framework to help investors align their portfolios in a manner to achieve net zero emissions
Builders and building materials
Mortgage borrowers who can only put up a 5% deposit will have the rest guaranteed by the government.
Having announced plans to hike corporation tax, the UK's finance minister said the government planned to review whether to rescind or amend the surcharge on banks' profits
The bank’s guidance “is consistent with greater earnings headwinds beyond 2021”
However, small caps are expected to fall behind as only 20% of AIM UK 50 directors are women
Profits fell 72% over the year to £1.27bn due to bad debts and another charge for PPI
Cost of risk is expected to fall leading to profit upgrades
Also in the diary for mid-week is Dettol maker Reckitt Benckiser, which will be reporting its full-year figures to the market
Archive
Brent crude was up 89 cents at US$63.80 a barrel. BP and Shell rose in sympathy.
Other banks, retailers and healthcare companies were also picked as good UK bounce-back investments
The Doncaster housebuilder, which specialises in new builds for first-time buyers, has done well during the coronavirus pandemic
A two-minute explainer on what to expect as Barclays and NatWest report this week, with HSBC, Lloyds and StanChart the week after
London's blue chips were outdone by domestically focused mid-caps, including pubs and travel companies