Citigroup Says Lloyds most at risk UK Bank in Stress Tests
December 9, 2014 3:32 pm
Citigroup has tipped Lloyds (LLOY.L) as the bank most likely to be at risk by the latest UK banking stress tests, of which results are due next week. The broker and analysts says BoE tests use more aggressive yard sticks and could see Lloyds in focus.
Commenting Citigroup said ”All listed banks are likely to ‘pass’, in our view, but we view Lloyds (LLOY.L) as most at risk, due to its large exposure to UK mortgages. The risk remains that economic conditions could deteriorate again, leading to reduced levels of activity and higher impairment losses. In addition, there is a degree of restructuring risk as the group continues to run-down legacy assets”
Off the back of the news shares in Lloyds (LLOY.L) are slightly down today trading at 78.94 (down 1.84%)
Bank of England stress test results are expected at 7am on 12th December.
Citigroup has tipped Lloyds (LLOY.L) as the bank most likely to be at risk by the latest UK banking stress tests, of which results are due next week. The broker and analysts says BoE tests use more aggressive yard sticks and could see Lloyds in focus.
Commenting Citigroup said ”All listed banks are likely to ‘pass’, in our view, but we view Lloyds (LLOY.L) as most at risk, due to its large exposure to UK mortgages. The risk remains that economic conditions could deteriorate again, leading to reduced levels of activity and higher impairment losses. In addition, there is a degree of restructuring risk as the group continues to run-down legacy assets”
Off the back of the news shares in Lloyds (LLOY.L) are slightly down today trading at 78.94 (down 1.84%)
Bank of England stress test results are expected at 7am on 12th December.
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