• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing Lloyds Bank share price forecast for 2023
Investing

Lloyds Bank share price forecast for 2023

by January 2, 2023
by January 2, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Lloyds Bank (LON: LLOY) share price had a difficult year in 2022 as concerns about the UK economy continued. The stock dropped by about 8% and struggled to retest its highest level during the year. Nonetheless, the company outperformed other banks as the closely watched KBE ETF plunged by over 20%. Goldman Sachs, Morgan Stanley, and Bank of America shares declined by more than 20% in 2022.

Lloyds vs banks chart by TradingView

UK recession fears

Lloyds share price outperformed the broader banking sector because of its reliance on interest income. Unlike banks like Barclays and Morgan Stanley, Lloyds does not have a major exposure in investment banking. Investment banking had its worst year in decades as the number of deals globally declined. 

This trend happened as interest rates pushed borrowing costs to the highest level in decades. Also, regulators, especially in the United States, slammed brakes on the sector. For example, the FTC sued to stop Microsoft’s acquisition of Activision Blizzard. 

Therefore, to some extent, Lloyds Bank benefited from rising interest rates as the Bank of England (BoE) delivered numerous hikes, as we wrote in this report. Lloyds and other banks make more money when rates rise since the spread between what they lend and take widens.

2023 will be a mixed year for Lloyds. On the one hand, the BoE has hinted that it will maintain high-interest rates for a while in a bid to cool inflation. The official cash rate stands at 3.5%, the highest level in more than a decade.

On the other hand, high-interest rates risk plunging the UK economy into a recession, which will lead to higher defaults. Indeed, in the third quarter, the company posted a pre-tax profit of $1.74 billion. This weak performance was because it set aside 688 million pounds in bad loans provisions. 

These loan provisions could increase in 2023 if the UK sinks into a recession. The question is whether interest income will help to cover bad loans.

Will Lloyds share price rise in 2023?

Despite its outperformance in 2022, Lloyds has been a perennial underperformer as the UK lost its place in global finance. The stock is currently sharply lower than its all-time high of 546p, which it reached in 1998. 

Lloyds has also underperformed following the government bailout after the 2008/9 Global Financial Crisis. It remains about 86% below the highest level in 2008. 

A look at its business shows no major catalyst for 2023. Besides, its exposure in the housing sector may come back to haunt it as prices slow. Therefore, there is a likelihood that the stock will remain under pressure in 2023. The key support and resistance levels to watch in 2023 will be at 38.2p and 56p, which were the lowest and highest points in 2022.

The post Lloyds Bank share price forecast for 2023 appeared first on Invezz.

You Might Also Like
  • Pros And Cons Of Options Trading: Advantages & Disadvantages
  • CBI says the UK is in a “short and shallow” recession
  • ConsenSys reveals it collects IP addresses of MetaMask users
  • Delta Neutral Trading: What Not to Do and How to Fix It
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Pilot Shortage: A Story of Stalled Supply and Rising Demand
next post
Rolls-Royce stock price forecast 2023: risks and opportunities

You may also like

FedEx is ‘setting the bar pretty low’: Expert

December 21, 2022

The Best Retirement Savings Plans For Every Age And Income...

June 29, 2023

Bumble shares are ‘attractive risk/reward’ at current levels: KeyBanc

January 10, 2023

This ad-tech stock opened 70% up on Monday: this is...

November 28, 2022

XPeng stock rises 48% from a double-bottom pattern. Should you...

December 1, 2022

SteadyOptions 2024 – Year in Review

January 5, 2025

Caterpillar stock price forecast: Bank of America sees a 15%...

January 15, 2023

Standard Chartered share price has retreated: Is it safe to...

January 9, 2023

Should you buy JPMorgan stock after its Q4 earnings?

January 13, 2023

Cathie Wood’s ARK buys 74,792 more Coinbase shares

January 12, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Week Ahead: NIFTY Stays In A Defined Range; Moving Past This Level Crucial For Resumption Of Upmove

      May 31, 2025
    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,582)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Week Ahead: NIFTY Stays In A Defined Range; Moving Past...

      May 31, 2025
    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,582)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Pros and Cons of Weekly Options

    February 5, 2023

    Coupa Software extends gains on reports...

    November 25, 2022

    Mike Mayo expects bank stocks to...

    January 13, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here