BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.
Lloyds Banking Group PLC is one of the world’s top financial institutions. It took its current form in 2009, upon the acquisition of HBOS by Lloyds TSB. Its roots reach back all the way to 1695 though.
The activities of the group include wealth management, insurance and pensions, commercial banking, as well as retail banking. Its retail services cover mortgages and sole traders.
The banking group is listed at the London Stock Exchange, and it is actually a FTSE 100 constituent. It is also listed at the New York Stock Exchange.
Needless to say, Lloyds Banking Group is a true global player. Its reach extends to Europe, the US, Asia as well as the Middle East.
The main subsidiary of Lloyds Banking Group is Lloyds Bank PLC. Lloyds Bank was traditionally one of the Big Four clearing institutions. This branch of the Group has quite a lengthy (and often not-too-savory) history to look back on too.
Other Lloyds Banking Group brands are: Halifax, Bank of Scotland, Scottish Widows, MBNA, LDC, Blackhorse, LEX Autolease, Birmingham Midshires and AMC.
What moves the needle on Lloyds stock?
Brexit is apparently the bogeyman of all UK business and Lloyds is no exception. The Group managed to log a very strong first quarter 2019, amid a none-too-forgiving banking environment. Its performance looking up, it still cannot escape the threat of Brexit, which is awaiting somewhere down the line.
Superior capital generation has been one of the strengths of Lloyds. Due to it, the company is less dependent on growth, which explains its recent success. Positive signals regarding Lloyds share price are most definitely there. Unfortunately, the October 31 deadline looms on the horizon more menacingly than ever, now that the Brexit party has squarely swept the EU elections.
Leading up to the mentioned strong Q1 performance of the company, was an equally sturdy 2018. Lloyds made its 2018 numbers public in February. According to them, its revenues exceeded 2017’s by some 24%.
For 2019, the company secured the option to buy back some GBP 1 billion worth of its own shares. This has certainly put an additional support under the share price.
Overall, thus far in 2019, Lloyds has been at the top of its class, clearly outperforming RBS well as Barclays, despite the fact that its results came in under expectations.
The bullish target price for Lloyds has been set to 71p per share. The way the situation is currently shaping up, this is definitely a realistic target. With Brexit in the equation however, not even the company itself is particularly optimistic in this regard.
What else is there to know about Lloyds stock?
The retail arm of the operation is much stronger than its commercial banking one. This is valid for deposits as well as lending. As far as lending goes, retail customers generate three times more volume than business clients.
The company launched a brand new strategy in 2018, focused on cost-cutting and technology improvements.
BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.