Todays FT Alaphaville comment on Banks below ( + analyst comments )
PM So amid all this Russian stuff havent been able to concentrate on the UK banks PM Co-op fails the stress tests PM But no real surprise there PM Barclays fine, no? Contrary to comments on the right PM Are they just winding us up with false info??? PM here's the Barc statemetn http://www.investe...1412160701518625Z/ BE Barclays makes it, easily. Lloyds and RBS are a bit tight to the wire. BE Which you can see as knocking dividend expectations a bit. But you'd be silly to have dividend expectations so I doubt that was in the price. Lloyds Banking Group plc (LLOY:LSE): Last: 75.37, up 0.97 (+1.30%), High: 75.69, Low: 74.22, Volume: 60.70m PM Full BoE stuff here: www.bankofengland..../results161214.pdf Royal Bank of Scotland Group PLC (RBS:LSE): Last: 364.20, up 0.5 (+0.14%), High: 368.40, Low: 360.10, Volume: 5.57m Barclays PLC (BARC:LSE): Last: 226.93, up 1.73 (+0.77%), High: 229.80, Low: 224.00, Volume: 17.14m BE Shore, sensibly, was expecting nothing and so wasn't disappointed. BE BE That's the key chart. BE
Unsurprisingly, given the PRA’s focus on the impact of a downturn in the UK economy and property markets, HSBC^ (HSBA, Hold at 592p) and Standard Chartered^ (STAN, Buy at 893p) achieved the strongest ratios while Lloyds^ (LLOY, Hold at 74p) and RBS^ (RBS, Hold at 364p) performed the weakest, while Barclays^ (BARC, Buy at 225p) is sat in the middle. As a consequence none of these banks will be required by the regulator to take additional action to address their capital positions over and above what they have already set out to do. Only the Co-operative Bank (unquoted), which failed the test, will be required by the PRA to take additional to address its capital position. This should also now pave the way for Lloyds to resume dividend payments to ordinary shareholders, starting with a 2014F final payable in spring 2015 (we assume 1.5p), although the resumption of dividend payments by RBS is unlikely to occur before before 2017 (i.e. a 2016F final), in our view. Overall, we do not expect the results of the stress test to have a material impact on the share prices of the large UK quoted banks, with macro events (Russia, Oil Price etc) likely to remain the principal driver of market sentiment towards the sector in the near-term, we think.
BE Gary Greenwood's the analyst there. PM (EQ -- i think you need less coffee) 11:45AM PM Phew
Markets Live: Tuesday, 16th December, 2014 | FT Alphaville
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