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The UK banks have once again handed investors a big dollop of volatility around Q1 results, showing that the devil is indeed in the details of sometimes complex and confusing earnings reports. Lloyds Banking Group shares kicked off today’s session in particularly vicious fashion as fuel for both bulls and bears was mined from its results statement. Barclays shares rallied 4% yesterday before the contrarians came along and took the price negative. And what do we have tomorrow? Royal Bank of Scotland!
Suffice to say that shares in the other bailed out UK bank have already started tanking this afternoon. Why? Because it looks as if more techy complexities (boring I’m sure, but significant) are keeping Williams & Glynn stuck to Royal Bank of Scotland with the force of a superconducting magnet until well beyond Q1 of 2017. With the divestment of the ‘challenger’ bank pushed back yet again, hopes that a resumption of dividend payments will be forthcoming any time soon have been crushed. Having heard this and with the bank due to report its Q1 earnings tomorrow, we direct you to Roald Dahl who’ll explain what’s going on this afternoon:
“I had a fairly powerful hunch
“That he might have me for his lunch.
“And so, because I feared the worst,
“I thought I’d better eat him first.” Said Dahl, freelance novelist from his shed in Great Missenden.
Augustin Eden, Research Analyst (29 April)
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