Lloyds, Britain’s biggest bank, is struggling. Its shares have plunged more than 56% this year alone, making it one of the most underperforming of the European banks. The same trend has been ongoing for the past decade as bank shares have fallen by more than 60% vs the KBE’s drop of around 40%.
Lloyds’ share price (LLOY) was one of the worst performers in the UK100 yesterday (October 13) , as investors continue to expect negative interest rates in the UK. Bank shares also reacted to the weak UK employment figures. Other British banks were in the red too, with Barclays down more than 2.7% and NatWest down more than 2%. Standard Chartered and HSBC shares also fell more than 1%.
In recent months, Lloyds’ share price has plunged due to the increasing possibility of a no-deal Brexit and the deterioration of the UK economy as a whole Lloyds tends to be more vulnerable than banks with major overseas operations, such as Barclays.The bank also does not have a trading division, which has been relatively profitable for other banks.
Low interest rates and its exposure to the broad mortgage industry have also helped lower Lloyds’ share price. At the same time, the BoE said it was considering negative interest rates. 
The daily chart shows that Lloyds Bank’s share price has been under strong pressure in the last few days, trading near the lowest level in more than a decade. A further decline remain a possible scenario as the low 21.73 which was an area of demand in 2012
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Ady Phangestu – Market Analyst – HF Educational Office – Indonesia
Market Analyst
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