Lloyds, Barclays and RBS share prices ahead of Brexit

Brexit continues to hinder the performance of British lenders, with uncertainty stifling investment and squeezing margins on UK mortgage margins.

Brexit has softened business confidence and is hindering the performance of British lenders in the process, with Barclays, Lloyds and Royal Bank of Scotland (RBS) all seeing their respective share prices fall by more than 11% over the last 12 months.

Technical analysis from our experts

'A move above 160p would put it above the July and September peaks, providing a more bullish view. A drop below 145p reaffirms the bearish view and brings the August low at 135p into play.'

Read the full detailed analysis in our platform now

Create a live or demo account now to read.

No-deal Brexit will hit domestically focused Lloyds hardest

Lloyds has taken strides to become a more domestically focused retail bank, tying its performance more closely to that of the wider UK economy.

In the event of Britain bailing out of the EU without a deal, the UK economy is predicted to suffer greatly in the short term, which would spell disaster for British lenders, with Lloyds likely to feel the impact more acutely than its rivals.

Barclays cuts costs ahead of Brexit

Earlier this year, Barclays recorded an 82% rise in half-year pre-tax profits despite ongoing Brexit uncertainty applying downward pressure on its share price

However, it is worth noting that the surge in profits, reflected the lack of additional charges which significantly hurt earnings during the same period last year, with the bank forced to settle with US authorities over its involvement in selling mortgage-backed securities ahead of the financial crisis.

Barclays and other UK lenders are not only contending with the uncertainty caused by Brexit, but also a competitive mortgage market and the threat of a global economic slowdown.

Consequently, Barclays is focused on cutting costs in second half of this year, with the lender shedding more than 3000 jobs across its operations in its second quarter (Q2) alone.

‘Management focus on cost control remains a priority, and we expect to reduce expenses to below £13.6 billion for 2019,’ Barclays Group CEO Jes Staley said.

Alison Rose to navigate RBS post-Brexit

In September, RBS announced that Alison Rose will take over from Ross McEwan as CEO – making her the first women to lead one of Britain’s top banks.

Rose will take the helm in November, which will see her forced to navigate the bank through a post-Brexit landscape, so long as the 31 October deadline isn’t push back.

Her job will be made all the more difficult by the government still controlling a significant stake in RBS and, depending on the type of Brexit the UK ultimately gets, progress towards privatisation could be hampered.

‘This is an exciting time as we enter a new chapter for this bank,’ Rose said. ‘Our industry is facing a series of challenges; from the ongoing economic and political uncertainty to shifts in the behaviour and expectations of our customers, driven by rapid advances in technology.’

‘It will be my priority to make sure we are ready to meet these challenges and build the best bank for families, businesses and communities,’ she added.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. 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, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Trading around Brexit

Find out how the UK’s exit from the EU continues to affect traders, and discover:

  • The unique opportunities in a ‘hard’ and ‘soft’ Brexit
  • The markets you should be watching
  • Everything that’s happened so far

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.