Lloyds (LON: LLOY) stock price fell Thursday after Barclays announced a 68% loss in fourth quarter net income overall, Barclays announced a 30% decline in pre-tax income to £ 31 Billion for the year of £ 4 billion in 2019

The Barclays results set the pace for the other banking giants who will be making their own year-end announcements in the coming days

The bank’s rivals, including Lloyds, will do well with Barclays, according to Investment Director at AJ Bell, Russ Mold:

“The Barclays rival boardrooms may be a little more nervous this morning as they prepare to release their own fourth quarter numbers as it looks like the first big name is around the corner Set high bar and still get a hit back from investors ”

While Barclays’ results suffered from the coronavirus pandemic, the blow has been cushioned by investment banking and the globalization of its operations

Lloyds earnings could show the bank was not well equipped to handle the economic impact of lockdowns on the banking sector Analysts predict Lloyds will earn $ 1 billion before tax GBP after 4 billion GBP4 billion in 2019

As of 2020, Barclays has over 680 customers struggling with the effects of Covid-19000 payment holidays worth 27 billion GBP made available The decision has been put under pressure by the banking regulators

Since Lloyds customers will face similar problems paying their mortgages, credit cards, and loans, expect the bank to announce a similar downturn in their finances as Barclays’ payment vacation

Although Covid-19 reached Barclays’ overall profit level, the volatility caused by the pandemic benefited the company’s high performing corporate and investment banking arm, The Barclays Corporate and Investment Bank (CIB) posted record profits of £ 125m, up 22% due to a “buoyant trading environment” that is softening the blow of major losses elsewhere

Lloyds, on the other hand, doesn’t have a strong investment banking unit to fall back on.While Barclays benefited from frantic trading levels in 2020, Lloyds could be exposed next Wednesday

Revenues from Barclays’ operations in the UK are down 14% from 2019 to £ 6 billion The decline is due to lower unsecured loan balances and interest rates, which affect the entire banking sector

While this is a significant decrease, much of Barclays ‘activity is in the US, including a large credit card portfolio and a number of corporate and investment banking exposures, while Lloyds’ functions, including its retail and commercial branches, are stronger geared towards the UK and therefore more susceptible to a negative economic environment in the country

Lloyds’ share price fell in line with Barclays on Thursday, suggesting the market had concerns about next week’s bank results release, Lloyds and Barclays shares have performed relatively similarly over the 2021 year to date : Lloyds up 2% and Barclays less than 1%

Barclays Share Price

World News – UK – Lloyds Share Price: Pressure Rises as Barclays Raises “The Bar” – UK Investor Magazine

Source: https://ukinvestormagazine.co.uk/lloyds-share-price-the-pressure-is-on-as-barclays-sets-a-high-bar/