Which FTSE-listed banks saw significant profits in Q2, H1?

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Which FTSE-listed banks saw significant profits in Q2, H1?

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 Which FTSE-listed banks saw significant profits in Q2, H1?
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Highlights:

  • Major FTSE banks like Standard Chartered and Lloyds have reported their results this week.
  • The numbers come amid record-high inflation and rising interest rates.

This has been a big week for the UK stock market as several companies have reported their results for the second quarter and the first half of the year. Let us take a look at the performance of some banking stocks and how their share price reacted to the numbers.

NatWest Group (LON: NWG)

The profits of British lender NatWest jumped during the first half of the year. The bank posted an income of £6.2 billion during the period, while its pre-tax operating profit reached 13% higher at £2.6 billion, significantly more than analysts' predictions. 

Following the strong profit growth, the lender announced more than £2 billion in dividends, which includes a special dividend of 16.8p and an interim dividend of 3.5p per share. This also means that the UK government is set to rake in £1 billion as it owns a 48% stake in the bank.

Shares of NatWest rallied over 8% after the results announcement. At 11:34 am GMT+1 on Friday, the shares were trading at GBX 247.10, up 7.44%. The company has a market cap of £23,934.08 million, and its one-year return currently stands at 22.48%, while the EPS is at 0.25.

Major FTSE banks like Standard Chartered and Lloyds have reported their results this week.

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Standard Chartered PLC (LON: STAN)

Another lender that reported considerable gains is Standard Chartered. It posted a pre-tax profit of US$1.32 billion for the past three months, beating analysts' expectations of US$1.06 billion. For the first half of 2022, the lender posted an overall pre-tax profit of $2.82 billion. This was 7% higher than the same period last year.

Shares of the company were trading 0.32% higher at GBX 586.60 as of 12:52 pm GMT+1 on 29 July 2022. With a market cap of £16,821.62 million and STAN has given a return of 31.59% to the investors over the past year. On the other hand, the year-to-date return currently stands at 26.72%. The EPS stands at 0.61.

Barclays Plc (LON: BARC)

Barclays' pre-tax profits fell 40% in the second quarter as the company put aside £1.3 billion for a major US trading blunder it was involved in. The profit before tax declined to £1.3 billion from £2.5 billion, lagging behind the analysts' expectations of £1.6 billion. The British multinational bank also kept £200 million aside for potential defaults in the last three months.

Shares of Barclays climbed 3.54% to GBX 155.66 at 1:07 pm GMT+1 on Friday after the results announcement. With a market cap of £24,535.71 million, the banking and financial services provider has given negative returns of -9.78% to investors, while the returns on a year-to-date basis stand at -16.62%.

Lloyds Banking Group Plc (LON: LLOY)

Lloyds Banking Group reported its half-yearly results on Thursday, surpassing expectations with £3.7 billion in profits in the first six months of 2022. However, these profits were 6% lower as the lender set aside the loan loss provision. The impairment charge for the period stood at £95 million due to the economic slowdown in the UK as inflation touched record levels.

Shares of Lloyds were at GBX 44.82, up 0.88% at 1:34 pm GMT+1 on Friday. The bank has a market cap of £30,429.16 million, and its share value dipped -by 4.10% over the past one year.

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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