CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider (Saxo Bank). You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money.

Equity Research; Lloyds Banking Group

Lloyds recovery on track

Conclusion

The strong reception to FY16 (LLOY 69p+2.2p) results will encourage the UK government to reduce its remaining 4.99% Lloyds holding. We expect the UK government to fully exit soon. Our expectation is half of the holding could go in the next fortnight.

As “digitization” (the banking industry move online) increases, banks are well placed to cut their High Street footprint and personnel costs. As long as I.T. spend is managed, there should be lower operating expenses. Lloyds is a major beneficiary of digitization, operating costs fell 3% during 2016 – there should be substantial savings in branch rationalization in the next decade.

Lloyds are below their 72.5p on June 23rd 2016, having spent 8 months recovering the Brexit aftermath losses. They are now 126% of tangible net assets per share of 54.8p a premium to its peer group. But 2017 is seeing property slowing down and a more cautious consumer with subdued credit demand. In the short term Lloyds are up with events.

Subscribe to our Award-winning Newsletter

We provide daily market data in the form of our award-winning newsletter, The Morning Call and The Market Close.
You can subscribe to this information at any time to help you make the most of your investment.

Quick Sign-up

Get Started with CSS

Open an Account

Subscribe to our award winning daily newsletter

Voted "Best Market Newsletter" in 2012, 2014, 2015 and 2017 by the City of London Wealth Management Awards

Subscribe to our newsletter (Popup)

By signing up to our free email, you are consenting to receive these promotions. The newsletter is sent up to three times per day during the week and up to once per day over the weekend and is directed at UK residents. The newsletter contains company news, market movements, CSS research and promotions and breaking economic news. Occasionally our newsletter will contain advertisements from trusted partners. However, we will never give, sell or rent your email address to any other companies. If you want to stop receiving our free emails you can unsubscribe at any time by clicking on the link at the bottom of each email. You can read our privacy policy here.

Sending
No, thank you I am already subscribed