STAN, NWG, VMUK: Financial stocks you can check out right now

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STAN, NWG, VMUK: Financial stocks you can check out right now

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 STAN, NWG, VMUK: Financial stocks you can check out right now
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Highlights:

  • Obtaining mortgages may get tougher for UK households in the coming months, a survey of lenders has found.
  • The demand for mortgages is also expected to come down during the period.

With inflation expected to rise in the coming months, there are expectations that the Bank of England (BoE) may raise the interest rates again. A new survey of lenders by the central bank has suggested that obtaining a mortgage or other forms of credit may become tougher for British households in the coming months due to such expectations.

The Credit Conditions Survey found that banks and building societies expect mortgage availability to fall across the three months to the end of August. The demand for mortgages is also likely to come down during the period. Along with mortgage, non-mortgage credit may also have less availability in the next few months, the lenders said, adding that the default rates on both mortgage and non-mortgage lending may increase.

Obtaining mortgages may get tougher for UK households soon.

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Amid the cost-of-living crisis, the demand for credit cards saw an uptick in the second quarter of the year, the BoE found. The length of the 0% interest period on balance transfer and purchases also increased during the period, and it is likely to increase in the third quarter.

Notably, BoE carries out a survey of banks and building societies every three months as part of its efforts to maintain financial stability. The latest survey was conducted between 30 May and 17 June.

Here's a look at some FTSE-listed stocks that provide financial services, including mortgage and credit cards.

Standard Chartered Plc (LON: STAN)

The British multinational bank and financial services provider has a network of over 1,200 branches and outlets in 59 markets across the world. The stock has provided decent returns of 26.10% to investors over the past year, while its YTD return stands at 26.23%. However, those who invested in the stock five years ago for long-term gains haven't been quite happy with the return as it has fallen about 30% during the period.

The company currently boasted of a market cap of £17,124.34 million and its shares were 1.70% down at GBX 567.20 as of 12:33 pm GMT+1 on 14 July 2022.

NatWest Group Plc (LON: NWG)

NatWest is a major UK-based lender that offers several banking and other financial services. The company has given a £1,000 bonus to 22,000 of its staff in lower-paid jobs to help ease the high cost of living. The stock was trading at GBX 214.20, down 0.79%, as of 12:39 pm GMT+1 on Thursday, with a market cap of £22,498.42 million. It has risen 6.31% over the past one year, while the year-to-date return stands at -5.14%. The stock's Earnings Per Share (EPS) is currently 0.25.

Virgin Money UK (LON: VMUK)

The company offers several financial services to retail and business clients through brands including Virgin Money, Clydesdale Bank, and Yorkshire Bank. It is listed on the FTSE 250 index and currently holds a market cap of £1,887.67 million. Shares of the company have depreciated by over 30% over the past year and by 26.12% on a year-to-date basis. The stock was trading at GBX 131.35, up 0.23% at 12:51 pm GMT+1 on 14 July 2022.

Note: The above content constitutes a very preliminary observation or view based on 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.

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