UK mortgage approvals fall: Should you hold these banking stocks?

4 min read | September 30, 2021 10:52 AM BST | By Team Kalkine Media

UK mortgage approvals fall: Should you hold these banking stocks? — Image source: Vintage Tone, Shutterstock.com

NatWest Group plc (LON: NWG)

The financial institution offers personalised banking solutions to individuals and corporate clients. In addition, it offers various kinds of mortgage loans as per needs and offers wealth management services to help clients achieve their short- and long-term financial goals.

The company has a long history of consistent performance in terms of revenue and profitability. During the first half of 2021, the lender reported a total income of £5,319 million, out of which net interest income (NIM) stood at £3,916 million. Also, the company reported a profit of £1,842 million during the period. As a result of good performance, the board has proposed a dividend of 3p per share. In addition, NatWest Group plans to distribute a minimum of £1 billion per annum over the next three years to its shareholders.

NatWest Group plc shares trade at GBX 224.30, down by 0.09% on 30 September at 8:20 am GMT+1 with a market cap of £25,710 million. The company’s current dividend yield stands at 2.7%.

Lloyds Banking Group Plc (LON: LLOY)

It is one of the largest UK-based financial service providers focusing on retail and commercial banking. It serves close to 30 million customers through its branch network and digital banking solutions.

The company returned to profitability in the six months ended 30 June 2021. It reported a net income of £7,564 million, while its profit before tax stood at £3,905 million. The bank’s net interest income was at £5,418 million, while its loans and advance to customers were at £448 billion during the period.

Also, the company has reintroduced its regular dividend pay-out policy following the lifting of regulatory restrictions on dividend payment during the pandemic period. The interim dividend paid by the company was 0.67p per share.

Lloyds Banking Group Plc shares trade at GBX 46.55, up by 0.24% on 30 September at 8:20 am GMT+1 with a market cap of £32,962 million. The company’s current dividend yield stands at 4.1%.

Paragon Banking Group Plc (LON:PAG)

The company offers financial products and services in the United Kingdom. It offers mortgages on the residential property along with commercial lending and secured and unsecured consumer loans.

The company’s year to date new business volume has witnessed significant growth. The Group’s net loan book increased by 3.9% at £13.1 billion, while its total advances stood at £1,922.3 million during the trading period from 1 October 2020 to 30 June 2021. The company has a positive outlook for the remaining financial year and expects net interest margin to exceed 235 basis points with strong performance projected for the mortgages and commercial division.

Paragon Banking Group Plc shares trade at GBX 551.50, up by 1.10% on 30 September at 8:20 am GMT+1 with a market cap of £1,367 million. The company’s current dividend yield stands at 4.3%.

Tags: Paragon Banking Group Plc, Lloyds Banking Group Plc, NatWest Group plc

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