Banking sector - bullish1 Oct 2024 10:13
"UBS recommends Barclays PLC (LSE:BARC) as its top pick, maintaining a 'buy' advice, while NatWest Group PLC (LSE:NWG) carries the same rating. Lloyds Banking Group PLC (LSE:LLOY) shares are seen as fairly valued, resulting in a 'neutral' call from UBS."
"Despite these risks, UBS believes UK domestic banks offer good value compared to their European counterparts, trading at lower price-to-earnings ratios while still delivering solid returns on equity.
Looking ahead, UBS expects further improvements in banks' net interest income (the difference between interest earned on loans and paid on deposits) even as central bank rates decline. The key factor will be how quickly banks adjust their deposit pricing.
The upcoming UK government budget, expected at the end of October, could introduce new taxes on the banking sector, adding uncertainty to the outlook."
In conclusion on lloyds specifically I would interpret it to mean that sp will remain unchanged until we get to the budget and find out what tax changes are on the cards.
https://www.proactiveinvestors.co.uk/companies/news/1057320/bradda-head-delighted-with-latest-san-domingo-samples-1057320.html