Lloyds Banking have seen their shares in green on Friday morning as the results of the General Election were announced. The Conservative Party smashed the election and now we will await the next updates on Brexit negotiations.
Last week, Moody’s Corporation (NYSE: MCO) lowered the UK banking sector’s outlook from stable to negative. However, shares have leapt on the announcement and have seen shares in green.
At the end of October, Lloyds Banking Group PLC (LON: LLOY) saw their shares crash following a poor quarterly update. The firm saw a 97% fall in pre-tax profit for the third quarter from last year.
The bank’s chief executive, Antonio Horta-Osorio, said: “I am disappointed that our statutory result was significantly impacted by the additional PPI charge in the third quarter, driven by an unprecedented level of PPI information requests received in August”.
Additonally, a few days back, Lloyds received criticism for the treatment of HBOS fraud victims.
Watchdog the Financial Conduct Authority said it would consider ‘further action’ against Lloyds over the failings, adding that they needed to be addressed quickly.
We are disappointed that, after such a long period of time, the consequences of the HBOS Reading fraud for customers have not yet been properly remediated by LBG,” the FCA added.
Today, shares in Lloyds have jumped 6.4% to 65p on the election results.
Following the election landslide, the future of British politics has been given some clarity however the newly elected Conservative government still has a lot of work to do.
Although, the election has given concrete results there is still so much uncertainty with Brexit negotiations, the future of the NHS and Foreign Relations.
The shares prices of British banks have seen their shares in green, and noteworthy rises have also come from Royal Bank of Scotland Group plc (LON: RBS) who have seen their shares spike 10.69% to 257p.
Additionally, Barclays PLC (LON: BARC) shares rallied 7.77% to 185p. 1/12/19 11:17BST.
Following a tough period of trading for banks in the global industry, the news this morning will only see shares temporarily boosted. However, this does give a good platform for the banks now to devise long term business plans to sustain growth and stimulate business in a tough market.
Certainly for now, the UK business sector awaits an update on Brexit negotiations, but banks will be pleased on reflections in share price movement this morning.
