Top Banking Stocks Under Review: LLOY, RBS, BARC and CYBG

October 17, 2019 12:26 PM BST | By Kunal Sawhney
 Top Banking Stocks Under Review: LLOY, RBS, BARC and CYBG

Lloyds Banking Group PLC

London based financial services provider, Lloyds Banking Group Plc (LLOY) offers a wide variety of banking services, non-banking services and ancillary services under its umbrella in the Retail, Consumer Finance and Insurance segments, predominantly in the UK. The company offers account facility both current and savings, long-term and short-term loans, investments and insurance products.

LLOY-Recent news

The company will announce the Q3 FY19 interim update on 31st October 2019.

LLOY-Financial highlights for H1 FY19

Despite an extra PPI (payment protection insurance) charge of £650 million, the company had delivered a strong profit (underlying) of £4.2 billion in H1 FY19, which was in line with the last year, with a profit (statutory) after taxation amounting to £2.2 billion. The company’s net interest margin (NIM) plunged by 3 basis points to 2.90 per cent as against the same period previous year data. The company’s cost to income ratio was down to 45.9 per cent (1.8 percentage points). The return on tangible equity (statutory) was up by 0.2 percentage points to 11.5 per cent in the first half of the fiscal year 2019 as against 11.3 per cent in the second half of the fiscal year 2018. The asset quality of the loan portfolio remained robust due to the company’s prudent credit risk assessment framework. The company’s interim dividend surged by 5 per cent and stood at 1.12 pence per share.

LLOY-Share price performance

On 17th October 2019, at the time of writing (before the market close, GMT 10:41 AM), LLOY shares were trading at GBX 60.93, down by 0.16 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 67.90/GBX 48.16. The outstanding market capitalisation was around £42.59 billion.

The company’s 5 days average traded volume was up by 72.29 per cent as against average traded volume for 30 days. At the time of writing, the shares of the company traded above the simple moving average of 30-days and 60-days.

LLOY shares have delivered a positive return of 12.77 per cent in the past one month. Also, from January to till date, the stock was up by approximately 17.70 per cent and was up by 5.26 per cent in the last quarter.

30-days, 14-days and 9-days RSI (Relative Strength Index) of the stock were recorded at 63.72, 71.24 and 75.42 respectively. Also, RSI of the stock for 3-days was recorded at 85.65.

Royal Bank of Scotland Group PLC

Banking and financial services company, Royal Bank of Scotland Group PLC (RBS) offers banking & insurance products along with ancillary services.

RBS-Recent News

The company will announce the update for Q3 FY2019 period on 24th October 2019.

RBS-Financial highlights for H1 FY19

The company’s total income surged by 6.2 per cent or £415 million to £7,117 million in H1 FY2019, despite lower central treasury income in the first half of 2019. The company’s net interest income was down by 7 per cent. The company’s operating profit was recorded at £2,694 million in the first half of the fiscal year 2019. The company’s profit attributable to shareholders was recorded at £2,038 million in the first half of the fiscal year 2019, and basic earnings per share were recorded at 16.9 pence per share in H1 FY19.

RBS-share price performance

On 17th October 2019, at the time of writing (before the market close, GMT 10:46 AM), RBS shares were trading at GBX 235.6, up by 2.56 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 250.33/GBX 176.55. The outstanding market capitalisation was around £27.68 billion.

The company’s 5 days average traded volume was up by 91.38 per cent as against average traded volume for 30 days. At the time of writing, the shares of the company traded above the simple moving average of 30-days and 60-days.

RBS shares have delivered a positive return of 10.81 per cent in the past one month. Also, from January to till date, the stock was up by approximately 16.11 per cent and was up by 6.34 per cent in the last quarter.

30-days, 14-days and 9-days RSI (Relative Strength Index) of the stock were recorded at 62.55, 70.45 and 75.60 respectively. Also, RSI of the stock for 3-days was recorded at 89.84.

BARCLAYS PLC

Barclays PLC (BARC) is a London, the United Kingdom-headquartered transatlantic Consumer, Corporate and Investment Bank which offers products and services across wealth management, credit cards, personal, corporate and investment banking, with a focus on increasing cash returns to shareholders and improving its return on tangible equity on a sustainable basis.

BARC-Financial highlights for H1 FY19

Though income from Consumer, Cards and Payments rose by 2%, a challenging income environment resulted in a 1% reduction in Corporate and Investment Bank, which led to a 1% decline in Barclays International income. A drop in the margin and efforts to maintain a reduced risk appetite in UK cards resulted in a decrease of 2% in Barclays UK incomeTotal income decreased by 1% to £10,790 million from £10,934 million in the prior year, while net operating income was down to £9,862 million from £10,363 million reported in the previous year, as credit impairment charges increased to £928 million (H1 2018: £571 million). The Barclays Group loan loss rate rose to 54bps (H1 2018: 35bps), reflecting a benign economic environment. Even as the company reported cost efficiencies and lower variable compensation accruals in Corporate and Investment Bank, continued investment in the business including planned digitisation of Barclays UK leading to 1% increase in operating expenses excluding litigation and conduct to £6,758 million, which corresponded with cost/income ratio of 63% (H1 2018: 61%). Operating expenses, including litigation and conduct, declined to £6,872 million from £8,716 million recorded in the previous year. Profit before tax including litigation and conduct rose to £3,014 million from £1,659 million in H1 2018, while profit before tax excluding litigation and conduct was £3,128 million (H1 2018: £3,701 million). Barclays UK profit before tax excluding litigation and conduct was £1.1 billion (H1 2018: £1.2 billion), while the statutory figure was reported at £1.1 billion (H1 2018: £0.8 billion) and Barclays International profit before tax was £2.3 billion (H1 2018: £2.7 billion). Excluding litigation and conduct, attributable profit was reported at £2.2 billion (H1 2018: £2.6 billion), generating basic earnings per share of 12.6p (H1 2018: 14.9p) and a return on tangible equity of 9.4% (H1 2018: 11.6%), while the non-recurrence of Q1 2018 litigation and conduct charges of £2.0 billion helped the group to report attributable profit of £2.1 billion (H1 2018: £0.6 billion).

BARC-Share price performance

On 17th October 2019, at the time of writing (before the market close, GMT 10:51 AM), BARC shares were trading at GBX 167.68, up by 2.08 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 181/GBX 131.04. The outstanding market capitalisation was around £28.27 billion.

BARC shares have delivered a positive return of 7.02 per cent in the past one month. Also, From January to till date, the stock was up by approximately 9.13 per cent and was up by 3.91 per cent in the last quarter.

CYBG PLC

CYBG PLC (CYBG) is the United Kingdom-based provider of commercial and personal banking and related financial solutions. The company operates through Virgin Money, Clydesdale Bank, Yorkshire Bank, and B brands. The company provides wealth management, investment and pension products, and private banking solutions.

CYBG-Recent News

On 28th November 2019, the company will announce the full-year results.

CYBG-Financial highlights for H1 FY19

For the first half of 2019, the company’s net interest income rose to £820 million in H1 FY2019 as compared with the corresponding period of the last year, driven by a substantial surge in the interest income for the existing period. In H1 FY19, the reported total operating income surged by £423 million to £926 million as compared to £503 million in H1 FY2018. The group’s pre-tax profit was £42 million in H1 FY2019 against a loss of 95 million in H1 FY2018. The Basic and diluted earnings per share stood at 0.2 pence in H1 FY19 as compared to a loss per share of 10.2 pence in H1 FY2018.

CYBG-Share price performance

On 17th October 2019, at the time of writing (before the market close, GMT 10:54 AM), CYBG shares were trading at GBX 142.50, up by 4.09 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 281.80/GBX 102.25. The outstanding market capitalisation was around £1.96 billion.


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