Jump to content

UK Banks Earnings Preview: HSBC; Barclays; Lloyds


MongiIG

Recommended Posts

It's the start of a busy week for UK banks, which kicked off their reporting season last week with Standard Chartered and Natwest.

 

Daniela Sabin Hathorn | Presenter and Analyst, London | Publication date: Monday 21 February 2022 

NatWest, which reported on Friday last week, generated profits of £4 billion in 2021 after suffering a £351 million loss the year before. But its shares failed to capitalise on the optimistic tone, ending the day lower by 2.5%, meaning there is some extra pressure on the shares of the banks reporting this week as expectations are very high. The prospects of higher rates in the next few months is the key focus of profit-generation in the next year, but investors are wanting to see more from the earnings reports after a strong performance from shares of UK banks in 2021.

 

HSBC stands out because it has greater exposure to Asia. A good comparison for HSBC's business is Standard Chartared, which reported earnings on Thursday last week, and has seen its shares rise almost 5% since the bank released its fourth quarter earnings, despite income and earnings coming in below expectations. That was because its net interest margin was higher than expected and it announced a new buyback and dividend, coupled with a forward guidance focused primarily on the expectations of increased lending on the back of higher interest rates. The net interest margin is going to be closely-watched in the upcoming release.

 

Technically, there is a divergence in RSI, with lower highs clashing with higher highs on the chart, signalling a bearish reversal in play. Because of this, we could see a pullback to the 50-day SMA (499.6), which was support seen back in January. On the upside, the RSI is still bullish, and moving averages are stacked positively, but we need to see a break above previous resistance at 5.67 for further bullish consolidation.

 

Barclays and Lloyds are also expected to produce a strong earnings report, boosted by much lower charges for bad debts as borrower defaults proved lower than feared, allowing major players to release the billions set aside for this in 2020. But both these banks are more geared towards the UK, and with their charts bearing close resemblance to Natwest, we could see the recent bearish pressure continue to bring the share prices down despite the potential for better than expected earnings

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • While browsing the web today, I stumbled upon the Apu Apustaja site, captivated by its melodious music and perfect rhythm. Intrigued, I delved into the project. APU stands out as a community-driven memecoin that emerged from the fallout of a rug-pulled project. Through unwavering dedication and transparency, the community resurrected APU, propelling it to become one of the fastest-growing memecoins, boasting a market capitalization of over $115M according to CoinMarketCap. A closer look reveals APU's ambitious aim: to emulate and surpass the success of PEPE. With leading exchanges like Bitget now listing APU, exposing it to a wider audience, it seems only a matter of time before this gem reaches a market cap of $500M or even $1B. What are your thoughts on this project? I encourage you to explore their website to get a firsthand glimpse of what I'm talking about.
    • Elliott Wave Analysis of Stock Markets: In today's update, I'm shifting focus to provide a broader perspective. With recent profit-taking in technology stocks, it's pertinent to examine the daily charts of major indices like the S&P 500 and Nasdaq 100, along with key tech companies including Apple, Tesla, Amazon, Nvidia, Microsoft, Meta Platforms, Netflix, and Alphabet. I'll discuss how these stocks are collectively aligning with their respective corrective pattern targets, offering a comprehensive view of the market's movements. Video Chapters 00:00 NASDAQ 100 (NDX) SP500 (SPX) 05:10 Apple (AAPL) 06:20 Amazon (AMZN) 06:57 NVIDIA (NVDA) 07:57 Meta Platforms (META) 08:53 Netflix (NFLX)  09:44 Alphabet (GOOGL) 10:49 Microsoft MSFT 12:44 Tesla (TSLA) 14:35 End Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge.com   
    • Would love to grab it at a little bit lower ...
×
×
  • Create New...
us