Barclays and Lloyds Under StockCall's Microscope: Foreign Banks Look Past Legal Troubles

  Barclays and Lloyds Under StockCall's Microscope: Foreign Banks Look Past
                                Legal Troubles

  PR Newswire

  LONDON, February 15, 2013

LONDON, February 15, 2013 /PRNewswire/ --

Foreign bank stocks provide an excellent opportunity to diversify an
investment portfolio since these stocks are mainly influenced by the
macroeconomic factors prevalent in their home country. However, this
attractive feature turns into a liability as well, as it is not an easy task
to keep tab on swiftly changing scenario in foreign countries. The point in
case are the British banks which are currently in troubled waters as most of
them are entangled in regulatory and legal hassles in their home country.
Barclays Plc (NYSE: BCS) was slapped with $450 million fine for its rate
manipulation tactics. The result was visible on its financial numbers. Lloyds
Banking Group Plc (NYSE: LYG) plans to cut jobs to reduce its costs and ensure
its viability. StockCall has released full comprehensive research on Barclays
and Lloyds Banking Group and these free technical analyses can be downloaded
by signing up at http://www.stockcall.com/technicalanalysis

Barclays Plc Increases Provisions

Barclays PLC reported $1.3 billion in net loss for its fiscal fourth quarter
of the year, down from net profit earned for the corresponding quarter of last
year. For the entire year, the bank suffered 1 billion GBP in net loss. The
bank sustained fourth quarter losses mainly due to its increased provisioning
for the claims arising out of enquiries against it. Free technical analysis on
Barclays PLC available by signing up at http://www.StockCall.com/BCS021513.pdf


In order to sustain its viability, the bank plans to undertake steep
cost-cutting measures. One such measure is to reduce its workforce by 3,700.
The move will help the bank in bringing about efficiencies in its operations
and will also reduce operating expenses.

Barclays PLC is facing its fair share of regulatory hassles as well. The
banking company's quarterly results were negatively impacted by its massive
statutory losses. Barclays Plc announced setting up $1.6 billion to meet new
compensation demands arising out of various legal enquiries initiated against
the banking company. With this new provision, the company now has 2.6 billion
GBP set aside for PPI scandal. The company has taken a wise step by boosting
its contingency funds. However, it would put strain on its finances and the
stock prices in short-run.

Lloyds Banking Group Plc Stock Up

Lloyds Banking Group Plc is also struggling with mounting costs and
compensation expenses. The banking company is also going to take the layoff
route to contain its costs. In continuation to its previous announcement to
cut 15,000 jobs, the banking company is now slashing 940 insurance and wealth
positions. Despite this, the bank seems to be recovering from its worst period
faced in 2011. It is still embroiled in Payment Protection Insurance scandal
and its associated costs are consistently increasing. The provisioning for
these losses will have definitive negative impact on the company's
bottom-line. Register today and access the free research on Lloyds Banking
Group plc at http://www.StockCall.com/LYG021513.pdf 

Despite rather bleak scenario, Lloyds Banking Group stock grew 60 percent in
the past 52 weeks and as it continues to improve its standing, the stock is
likely to retain this momentum. The company has not paid any dividend in the
recent past, which was mainly due to regulatory curbs placed on it. However,
management may resume dividend payment in 2014. Overall, despite shaky
scenario in foreign bank's sector, Lloyds Banking Group offers a good
investment opportunity.

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