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UK high street banks reporting full-year results

The end of this week kicks off earnings season with the four major UK banks reporting on:

  • RBS, Friday 15 February
  • HSBC, Tuesday 19 February
  • Lloyds, Wednesday 20 February
  • Barclays, Thursday 21 February

Will this turnaround continue? Which high street banking stocks could provide value for investors ahead?


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RBS (RBS) – full-year results: Friday 15 February

  • Shares have bounced back after falling close to 5% at their last release, with selling resulting from increased operating costs despite profits being up 10% year-on-year. Will upwards momentum in price continue come Friday 15 February?
  • Over two-thirds of analysts (69%) recommend RBS as ‘buy’.
Buy 69%
Hold 31%
Sell 0%
Average target price 294.9p
Distance to target price 23.8%
Day performance on last earnings release -4.7%

Data sourced from Bloomberg


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HSBC (HSBA) – full-year results: Tuesday 19 February

  • HSBC delivered a robust earnings report in October 2018 which lifted shares from a two-year low of 600p.
  • Shares have had a fairly stable start to 2019. Positive reaction to news of a round of trade talks between China and the US could provide increased opportunity for the Asia-focused bank.
Buy 32%
Hold 46%
Sell 22%
Average target price 711p
Distance to target price 10.8%
Day performance on last earnings release +5.8%

Data sourced from Bloomberg


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Lloyds (LLOY) – full-year results: Wednesday 20 February

  • The UK-based lender raised the dividend and is planning to raise its share buyback scheme to £2bn in 2019.
  • The stalwart of the retail investor portfolio ended 2018 trading close to the lowest price we have seen in two years, however it has made a 10% gain so far this year.
  • Lloyds have announced plans to hire more than 700 financial advisers and set an aggressive target of increasing assets under management from £13bn to £25bn. It is encouraging that despite Brexit looming, their appetite for growth is far from suppressed.
  • Over half of analysts (58%) recommend Lloyds as ‘buy’.
Buy 58%
Hold 32%
Sell 10%
Average target price 70.5p
Distance to target price 23.7%
Day performance on last earnings release +3%

Data sourced from Bloomberg


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Barclays (BARC) – full-year results: Thursday 21 February

  • Shares have bounced into 2019 after plummeting to two-year lows at the end of 2018. They are some 40% away from their 2018 high with analysts on average predicting it could achieve the majority of this move.
  • The usual Brexit caveats apply – Barclays have opted to move some derivatives roles to Paris in anticipation, but despite this 93% of analysts see value with a rating of ‘buy’ or ‘hold’.
  • At last release, Barclays posted a 23% increase in pre-tax profit. Barclays have signalled their intent that the dividend yield will be 4.2% for 2019, and coupled with the relative low the shares are trading at, could this provide an opportunity for investors?
Buy 52%
Hold 41%
Sell 7%
Average target price 203.9p
Distance to target price 30.9%
Day performance on last earnings release +3%

Data sourced from Bloomberg


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*Prices and rates in tables accurate as of 11.02.19.

This is a marketing communication and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without having regard to any particular investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared utilizing publicly-available information.Your capital is at risk.

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