Those Problems With UK Banks?
As we all know, the UK banking sector had a torrid time through the last 5 years. Some will say (with a distant memory) it was all justified, by the way they helped bring the economy to it’s knees. However, all that aside, it seems that many are looking to invest in banks again. Let’s take a quick look at some of the big boys to see what’s fuelling any current trends.
Shares of LLOYDS are on a roll at the moment, with quite a significant rise since last summer. The gains tie in with the general rise in the markets, but stalled slightly around the 75p area since the UK Government started selling down it’s stake from bailing out the bank. However since then the price still seems to want to test some higher areas, any break above the 80p area could see some big money come in, but don’t be surprised to see the Government sell into any strength, considering they still own a large part of LLOYDS.
Barclays had a tough time of it during 2013. Not only did the price go sideways for most of the year, it started to fall from the summer while the rest of the market was in good shape. The company was told to raise some funds in September by the Prudential Regulation Authority, this ties in with the small slump under the 300.00 area.
So what have Barclays got to look forward to? Not a great deal to be honest, however estimates are that the company should pay a dividend of 10.7p in 2014, be thankful for small mercies.
Royal Bank of Scotland traded sideways (much like Barclays) during 2013, ending the year around 50p off it’s high. The strength in RBS is that it has significant international assets. With mortgage assets of around 20 billion is Citizens (US arm) and similar levels in Ireland. Over time, RBS may become more attractive to investors as it disposes of these assets and becomes a more profitable operation.
Next time we will take a look at some of the FTSE insurance companies, and see how they faired up during 2013.