Lloyds 1Q miss
Lloyds Banking Group, a major British bank, announced mixed 1Q results
Share this:
Lloyds Banking Group, a major British bank, announced mixed 1Q results: "Statutory profit before tax for the three months ended 31 March 2020 was 74 million pounds, 95% lower than in the first quarter of 2019, impacted by a significantly increased impairment charge. The impairment charge in the quarter increased significantly to 1,430 million pounds, primarily driven by updates to the Group's economic outlook and some charges relating to existing restructuring cases.
The Group's statutory return on tangible equity was 5.0%. Net income of 3,952 million pounds was 11% lower than in the first three months of 2019, with both lower net interest income and lower other income, reflecting lower interest rates. The Group expects the impact of lower rates, changing balance sheet mix, fee forbearance and lower levels of customer activity to continue to affect net interest income and other income into the second quarter."
From a technical perspective, the stock price has broken above a declining trend line and is posting a rebound. The weekly bullish candlestick which is taking shape offers strong support at 30p. The weekly Relative Strength Index (RSI, 14) confirmed the breakout of its oversold area at 30%. Lloyds bulls may want to take advantage of any pullback towards 32 to consider buy opportunities. Next bullish target is set at 38.5p.
Alternatively, a break below 30p would invalidate the bullish bias and would call for a new down move towards 26p.
Source: GAIN Capital, TradingView
Lloyds Banking Group, a major British bank, announced mixed 1Q results: "Statutory profit before tax for the three months ended 31 March 2020 was 74 million pounds, 95% lower than in the first quarter of 2019, impacted by a significantly increased impairment charge. The impairment charge in the quarter increased significantly to 1,430 million pounds, primarily driven by updates to the Group's economic outlook and some charges relating to existing restructuring cases.
The Group's statutory return on tangible equity was 5.0%. Net income of 3,952 million pounds was 11% lower than in the first three months of 2019, with both lower net interest income and lower other income, reflecting lower interest rates. The Group expects the impact of lower rates, changing balance sheet mix, fee forbearance and lower levels of customer activity to continue to affect net interest income and other income into the second quarter."
From a technical perspective, the stock price has broken above a declining trend line and is posting a rebound. The weekly bullish candlestick which is taking shape offers strong support at 30p. The weekly Relative Strength Index (RSI, 14) confirmed the breakout of its oversold area at 30%. Lloyds bulls may want to take advantage of any pullback towards 32 to consider buy opportunities. Next bullish target is set at 38.5p.
Alternatively, a break below 30p would invalidate the bullish bias and would call for a new down move towards 26p.
Source: GAIN Capital, TradingView
Related tags:
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
S&P 500, Nasdaq, Dow Forecast: Rising Yields Test Rally Ahead of Nvidia, Fed 8 22 2026
S&P 500, Nasdaq and Dow test key technical levels as momentum fades, raising the risk of a deeper correction heading into a pivotal week.
GBP/USD, Dow Jones Forecast: Key Technical Scenarios to Watch
GBP/USD and the Dow Jones are approaching critical technical levels amid earning optimism, Fed rate hike expectations, US-Iran developments, and persistent geopolitical risks.
The U.S. Dollar Is Rising Again and Nasdaq Is Feeling It
Nasdaq, the U.S. Dollar Index and Federal Reserve expectations are driving market sentiment ahead of a pivotal FOMC meeting. Razan Hilal, StoneX Market Analyst, explains how rising expectations for a hawkish Federal Reserve, persistent U.S.-Iran tensions and key technical levels on the U.S. Dollar Index could influence currencies, equities and precious metals in the weeks ahead.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.