Lloyds Banking Group PLC

Lloyds Banking Group PLC (LON: LLOY) is listed on FTSE 100 index. It offers a variety of banking and financial services in the United Kingdom and globally.

On 4 January 2022, the Group announced that holders of each Series' securities had been notified that each Series' securities would be redeemed in full on 3 February 2022 or 4 February 2022, as applicable.

Investment Rationale – Expensive at GBX 52.09

• Decrease in Financials Numbers: In the first nine months of 2021, the net interest income was down by 1% to £8,249 million against £8,326 million in 2020.
• Increase in Operating Expenses: Due to a rise in regulatory provision charges, the company's total operating expenses have increased by £93 million to £6,760 million in the first nine months of 2021, compared to £6,667 million in the first nine months of 2020.
• Unfavourable Technical Indicators: From a technical viewpoint, the 14-days RSI of the stock is ~55.54, and the price is falling between the upper Bollinger band and the middle Bollinger band, which reflects a bearish price momentum.
• Trading near 52 Weeks High: The Company’s stock is trading very close to the 52-week high. Thus, it may face retracement from the overstretched levels.

One Year Share Price Chart

(Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the overstretched valuations, and unfavourable technical indicators, we have given an "Expensive” recommendation on Lloyds Banking Group PLC at the current market price of GBX 52.09 (as of 21 January 2022 at 08:49 AM GMT). However, for any profit booking scenario, buy and holding levels should be looked at as per investors' risk appetite.

Note 1: The reference data in this report has been partly sourced from REFINITIV.

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