Stress Test Result of Top Banking Companies of UK: BARC, LLOY, RBS & HSBA

  • Dec 22, 2019 GMT
  • Team Kalkine
Stress Test Result of Top Banking Companies of UK: BARC, LLOY, RBS & HSBA

Barclays Plc

Barclays Plc (LON: BARC) is an international financial service sector holding company. The company provides loans, invests and safeguards money for customers and clients globally. The company’s purpose is to create an opportunity for the betterment of customers, clients, colleagues and society. The company has around 23 million customers and almost one million businesses. It collaborates with local stakeholders to maximise opportunities for the UK’s communities.

BARC - News Updates

On 16th December 2019, the company announced the stress test result. The company passed the test with 8.9 per cent, the stressed transitional Common Equity Tier 1 ratio under the Bank of England assessments. The company surpassed the stress test requirement rate of 8.1%.

On 16th December 2019, the company announced that Matthew Lester resigned from his role as a Non-executive Director, as well as a member of its Risk and Audit Committees. The last day of Matthew in the office would be 1st January 2020.

BARC – Financial Highlights

On 25th October 2019, the company announced its third quarter and nine-month result ended 30th September 2019.

The company’s total income increased to £16,331 million in nine-month of FY2019 as compared to £16,603 million in Nine-month of FY2018, a change of 1.64 per cent. The profit before tax increased to £3,260 million in nine-month of FY2019 as compared to £3,120 million in nine-month FY2018, a change of 4.49 per cent.

The company’s profit after tax increased to £2,446 million in nine-month of FY2019 as compared to £2,284 million in nine-month of FY2018, a change of 7.09 per cent. The attributable profit rose to £1,780 million in Nine-month of FY2019 as compared to £1,611 million in nine-month of FY2018, a change of 10.49 per cent.

The company’s basic earnings per share increased to 10.4 pence in nine-month of FY2019 as compared to 9.4 pence in nine-month of FY2018. The dividend per share increased to 3.0 pence in nine-month of FY2019 as compared to 2.5 pence in nine-month of FY2018.

(Sources: LSE)

BARC - Share Price Performance

On 20th December 2019, at 16.30 PM GMT, at the market close, BARC share price was reported to be at GBX 178.84 per share on the LSE, a decrease of 2.48 per cent or GBX 4.54 per share. The company's market capitalisation was reportedly valued to be at GBP 31.75 billion.

Lloyds Banking Group plc

Lloyds Banking Group Plc (LON: LLOY) is a company providing financial services and helping the millions of customers of UK in every society. Its business is divided mainly into three segments, retail, commercial banking and Insurance & Wealth. In 2018, the company supported over 124,000 start-up businesses and lent money of £12.4 billion to the first-time home buyers.

LLOY - News Updates

On 18th December 2019, the company announced that it has made and application to UK listing and LSE for block listing of 352.0 million ordinary shares of 10p each in the company which contain 50 million shares of the company’s incentive plan and 259 million shares for the company’s save scheme 2007 as well as 43 million for deferred bonus plan 2008.

On 16th December 2019, the company announced that it passed the Bank of England’s stress test.

LLOY – Financial Highlights

On 31st October 2019, the company announced its nine-month result for the period ended 30th September 2019.

The company’s Net interest income decreased to £9,275 million in nine-month of FY2019 as compared to £9,544 million in nine-month of FY2018, a change of 2.8 per cent. The Net income decreased to £13,009 million in nine-month of FY2019 as compared to £13,423 million in nine-month FY2018, a change of 3.08 per cent.

The company’s total costs decreased to £6,043 million in nine-month of FY2019 as compared to £6,380 million in nine-month of FY2018, a change of 5.28 per cent. The underlying profit fell to £6,016 million in nine-month of FY2019 as compared to £6,303 million in nine-month of FY2018, a change of 4.55 per cent.

The company’s basic earnings per share decreased to 2.2 pence in nine-month of FY2019 as compared to 4.7 pence in nine-month of FY2018. The average interest-earning banking assets decreased to £434 billion in nine-month of FY2019 as compared to £436 billion in nine-month of FY2018.

(Sources: LSE)

 LLOY - Share Price Performance

On 20th December 2019, at 16.30 PM GMT, at the market close, LLOY share price was reported to be at GBX 62.39 per share on the LSE, a decrease of 2.39 per cent or GBX 1.53 per share. The company's market capitalisation was reportedly valued to be at GBP 44.77 billion

Royal Bank of Scotland Group Plc

Royal Bank of Scotland Group Plc (LON: RBS) provides financial services and products to individual and enterprise customers in the entire UK and many other countries. The company serves almost 18.9 million customers internationally.

RBS - News Updates

On 19th December 2019, the company announced that its subsidiaries, which are Natwest Markets Plc and Natwest Markets N.V. announced to change their executive team. Richard Place and Chris Marks has stepped down from the post of Chief Financial Officer and Chief Executive Officer respectively. During the undergoing external search period, Robert Begbie has been appointed as Chief Executive Officer and Robert Horrocks has been appointed as Chief Financial Officer.

On 16th December 2019, the company announced that it achieved another accurate pass in the Bank of England's stress test.

RBS - Financial Highlights

On 24th October 2019, the company announced its Q3 and nine-month result for the period ended 30th September 2019.

The company’s operating profit/(loss) before tax decreased to £2,686 million in nine-month of FY2019 as compared to £2,787 million in nine-month of FY2018, a change of 3.6 per cent. The profit attributable to ordinary shareholders increased to £1,723 million in nine-month of FY2019 as compared to £1,336 million in nine-month FY2018.

The company’s net interest income decreased to £6,010 million in nine-month of FY2019 as compared to £6,480 million in nine-month of FY2018, a change of 7.25 per cent. The non-interest income rose to £4,010 million in nine-month of FY2019 as compared to £3,864 million in nine-month of FY2018, a change of 3.77 per cent.

The operating expenses decreased to £6,798 million in nine-month of FY2019 as compared to £7,176 million in nine-month of FY2018.

(Sources: LSE)

RBS - Share Price Performance

On 20th December 2019, at 16.30 PM GMT, at the market close, RBS share price was reported to be at GBX 242.00 per share on the LSE, a decrease of 2.18 per cent or GBX 5.40 per share. The company's market capitalisation was reportedly valued to be at GBP 29.92 billion.

 

HSBC Holdings Plc

HSBC Holdings Plc (LON: HSBA) founded in 1865 is the provider of financial and banking services. It is one of the world’s leading global bank and is operating in sixty-five territories and countries, serving more than forty million customers across the globe.

News Updates

On 16th November 2019, the company announced the stress test result of Bank of England for 2019. The result showed that the company’s standard equity tier 1 capital ratio on an IFRS 9 transitional basis would decrease to the low-level point of 8.9% which was above 7.7% of HSBC’s CET1 hurdle rate. However, with IFRS 9 non-transitional basis, HSBC’s CET1 capital ratio was forecast to attain a low point of 8.1%, which was above 6.6% of the company’s IFRS 9 non-transitional CET1 hurdle rate.

The company further said that outcome showed that the company gained capital strength under this grieve plunging scenario.

HSBA - Financial Highlights

On 28th October 2019, the company announced its nine-month financial earnings for the period ended 30th September 2019.

The company’s reported revenue increased to $42,727 million in nine-month of FY2019 as compared to $41,085 million in nine-month of FY2018, a change of 3.9 per cent. The reported profit before tax increased to $17,244 million in nine-month of FY2019 as compared to $16,634 million in nine-month FY2018, a change of 3.66 per cent.

The company’s reported profit after tax decreased to $13,732 million in nine-month of FY2019 as compared to $12,932 million in nine-month of FY2018, a change of 6.18 per cent. The Profit attributable to the ordinary shareholders of the parent company rose to $11,478 million in nine-month of FY2019 as compared to $11,071, million in nine-month of FY2018, a change of 3.67 per cent.

(Sources: LSE)

HSBA - Share Price Performance

On 20th December 2019, at 16.30 PM GMT, at the market close, HSBA share price was reported at GBX 600.20  per share on the LSE, an increase of 0.03 per cent or GBX 0.20 per share. The company's market capitalisation was reportedly valued to be at GBP 122.52 billion.

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