Qualified advisers answering your
Financial Questions
call 0800 092 1245

UK banking analyst attacks Lloyds bank and Royal Bank of Scotland

Jonathan Pierce of Credit Suisse has attacked the recent rise in the share prices of Lloyds bank and Royal Bank of Scotland which between them are now worth around £60 billion, not far from their 2007 high. When you consider the current trading environment as well as the debt situation, maybe the analyst does have a point and potentially the shares have maybe moved ahead too quickly?

When you also throw into the mix the fact that the UK government will at some stage be a forced seller of its stakes in Lloyds bank and Royal Bank of Scotland, probably sooner rather than later, there is particular uncertainty surrounding these two banks. As we touched on in one of our earlier posts, the refinancing of Johnston Press does not appear to have attracted a great amount of interest in the banking industry and it was interesting to see that Royal Bank of Scotland and Lloyds bank were able to offer the best deal. When you consider this deal was struck at nearly 10% on a £400 million plus debt refinancing it would appear that the UK money markets are still very tight.

Is this really a situation which warrants the current rally in the sector and Royal Bank of Scotland and Lloyds bank shares in particular?

Share this..

Related stories

Emerging market investment - is it time to take a look?

When the worldwide economy is performing well there is often great interest in the emerging markets of the world where base prices may be a little cheaper and offer better value for money. However, once a downturn... Read More

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details