The Lloyd’ Banking Group (LON:LLOY) share price remains in a steady down trend having broken back below 60p towards the lowest levels since late 2016.
The bank posted highs of 72.6p in January 2018 but has since shed nearly 20% of its value.
The persistent declines come in spite of strong results released in August in which the company announced an interim dividend hike to 1.07p from 1p. Underlying profits jumped 23% to £3.1 billion for the first half of the year.
However, investors have shunned Lloyd’s as mounting concerns over Brexit create uncertainity for the future of the bank.
In their half year report, CEO António Horta-Osório commented on the results:
“The UK faces a period of political and economic uncertainty in the run-up to the UK’s departure from the European Union, however the UK economy remains resilient and, excluding the impact of adverse weather, continues to demonstrate robust growth. The economy is benefiting from the highest employment rate in half a century and household indebtedness remains significantly below pre-crisis levels, with strong growth in the world economy also positive for UK exports.”
Adding to souring sentiment surrounding the stock, fund management star Neil Woodford has reduced his stake in the company over the past year.
Woodford is not alone in disposing of Lloyd’s shares. Goldman Sachs released a sell rating for the stock in September with a price target of 55p.
Despite negativity from Woodford and Goldmans, some analysts are positive on the stock with Credit Suisse recently issues an outperform rating on the share and Hargreaves Lansdown analysts say the bank is in ‘rude health’.
