Banks

Focus on capital returns given uncertain macro backdrop

  • Sectors : Banks
  • Companies : Lloyds Banking Group | RBS

Ratings

Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Lloyds Banking Group NEUTRAL 14/02/18 Outperform 13/11/15 62.2p
RBS NEUTRAL 11/02/19 N/A N/A 252p

DAVY VIEW

Both Lloyds Banking Group (LLOY) and RBS continue to deliver towards their stated management ambitions – resulting in meaningful capital returns. The prospect of a ‘no deal’ Brexit may have been substantially removed, but political and economic instability in the UK remains extremely elevated. A general election is an ever-increasing possibility with resultant impacts on business investment and consumer confidence. Set against this uncertain backdrop, we retain our ‘Neutral’ rating on both LLOY and RBS with price targets of 70p and 305p respectively.

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Apr 9 2019, 06:30 IST/BST

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