Highlights
- The Russian invasion of Ukraine has introduced new uncertainty to the global stock markets and sent shockwaves to every other asset class.
- The banking sector forms the core of the global economy and is known to be among the first movers to reflect changes in the macroeconomic and geopolitical landscape.
- The London-listed banking stocks have recently seen a sharp decline in their prices.
The global stock markets are facing new uncertainty with the Russian invasion of Ukraine, which will continue to be a major focus till the war lasts. The banking sector forms the core of the global economy and is known to be among the first movers to reflect changes in the macroeconomic and geopolitical landscape.
The London-listed banking stocks have recently seen a sharp decline in their prices because of the escalating geopolitical tension between Russia and Ukraine and tougher sanctions imposed by western countries and businesses on Russia.
It is expected that if any positive news comes from Eastern Europe, banking stocks may see some bounce-back. At the same time, the evolving situation coupled with supply chain constraints may also add to already rising inflation. If inflation rises too sharply, it could slow down the recovery of the global economy, and banking stocks will be the first to show the reaction by moving lower. However, to address the rising inflation central bank usually raise base interest rates, which increases profits for the banking companies.
Let us explore five FTSE-listed banking stocks and see how they are faring:
Standard Chartered Plc (LON: STAN)
The UK-based multinational banking and financial services company Standard Chartered Plc’s shares were trading at GBX 485.50, down by 0.84%, at 11:15 AM (GMT), on 11 March 2022.
The market cap of the FTSE100-listed company stands at £14,923.70 million as of 11 March 2022. The company has given a one-year return of 0.17% to its shareholders, while its year-to-date return stands at 8.32% as of 11 March 2022.
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HSBC Holdings Plc (LON: HSBA)
One of the world’s leading banking and financial services companies and the second-largest bank in Europe, HSBC Holdings Plc’s shares were trading at GBX 476.10, up by 0.13%, at 11:15 AM (GMT), on 11 March 2022.
The market cap of the FTSE100-listed company stands at £96,117.54 million as of 11 March 2022. The company has performed well and has given a one-year return of 11.91% to its shareholders, while its year-to-date return stands at 6.01% as of 11 March 2022.
NatWest Group Plc (LON: NWG)
One of the largest UK commercial banks and leaders in the retail space, NatWest Group Plc’s shares were trading at GBX 207.10, up by 0.83%, at 11:15 AM (GMT), on 11 March 2022.
The market cap of the FTSE100-listed company stands at £23,074.64 million as of 11 March 2022. The company has performed well and has given a one-year return of 10.59% to its shareholders however, its year-to-date return stands at -8.42% as of 11 March 2022.
Lloyds Banking Group Plc (LON: LLOY)
The UK-based financial services group with a focus on retail and commercial customers, Lloyds Banking Group Plc’s shares were trading at GBX 45.02, up by 0.95%, at 11:15 AM (GMT), on 11 March 2022.
The market cap of the FTSE100-listed company stands at £31,478.61 million as of 11 March 2022. The company has performed well and has given a one-year return of 11.05% to its shareholders, while its year-to-date return stands at -5.89% as of 11 March 2022.
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Barclays Plc (LON: BARC)
The British universal bank that offers products and services such as wealth management, personal, corporate and investment banking and credit card, Barclays Plc’s shares were trading at GBX 158.66, up by 0.56%, at 11:15 AM (GMT), on 11 March 2022.
The market cap of the FTSE100-listed company stands at £26,441.62 million as of 11 March 2022. The company’s shares have been showing a bearish trend with a negative return of 8.87% to its shareholders in the last one year, while on a year-to-date basis, the return stands at -15.88% as of 11 March 2022.
Note: The above content constitutes a very preliminary observation or view based on industry and market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
Tags- Standard Chartered Plc, HSBC Holdings Plc, NatWest Group Plc, Lloyds Banking Group Plc and Barclays Plc