Lloyds earnings preview: Where next for Lloyds stock?

When will Lloyds release its earnings?

Lloyds Banking Group is scheduled to release its quarterly earnings on Wednesday 27 July before the market open.

Lloyds earnings consensus

Wall Street forecasts revenue will come in at $5.16B and expects $0.07 in EPS.

Lloyds earnings preview

Lloyds Bank is a leading British bank and is often seen as a barometer of the country’s economy; Unlike banks like Barclays and HSBC, Lloyds does not have any major international operations, providing a clearer read on the UK economy itself. In addition, the bank derives most of its revenue from retail and business banking; through Halifax, it is the biggest mortgage lender in the UK.

From a macroeconomic perspective, the bank may benefit from rising interest rates in the UK as the Bank of England seeks to curtail inflation. Generally speaking, banks generate more net interest income when interest rates rise, and this impact will be particularly salient for a consumer- and business-focused operation like Lloyds. That said, the recent rapid rise in rates risks slowing transaction volume in the mortgage market, so even if the company makes more per mortgage, it could still face headwinds from lower overall mortgage volume.

Outside of that, another factor that traders will be watching in this quarter’s earnings will be credit losses. Lloyds has historically focused on the prime+ portion of the market, suggesting that its loan book should be relatively resilient to worsening economic conditions. Analysts will be watching the company’s loan loss reserve for insight into how concerned executives are about the future of the UK economy.

Where next for Lloyds stock?

As the chart below shows, LLOY has been trending lower along with the broader market since peaking at the start of the year. That said, shares have recently bounced from support at their previous lows in the 41.00 area, signaling some optimism ahead of Wednesday’s results:

Source: StoneX, TradingView

Looking ahead, bulls will be watching to see if prices can break above the 100-day EMA in the 45.00 area to open the door for a more sustained rally into the upper-40.00s, whereas a break below support in the 41.00 area would be a bearish sign and open the door for continued weakness toward the year-to-date lows near 38.00.

How to trade with City Index

You can trade with City Index by following these four easy steps:

Open an account, or log in if you’re already a customer

• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
Search for the market you want to trade in our award-winning platform
Choose your position and size, and your stop and limit levels
Place the trade

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.