Barclays is thanks to report Q4 results on Thursday 18th February & NatWest on Friday 19th February. Whilst Q3 numbers improved, more lockdowns means the roasd to recovery could still be rocky.
Barclays has been the simplest performing of the large UK4 banks.
Even so the devour from the March lows has been a slow grind higher.
Bad loan provisions have reached £4.3 billion thus far and whilst Q3 saw a significantly lower amount put aside for bad loans this might devour again in Q4 given the lockdowns.
Barclays big investment banking arm has helped to offset weakness within the retail division.
The share price still trades range bound. However it’s moved to the upper end of the range andt he RSI supports further upside.
Bulls might be trying to find an opportunity above 160p whilst the bears could await an opportunity below 130p.
NatWest has proved to be more resilient than initially feared through the pandemic.
Bad loan provisions were hiked sharply in early 2020. However these did not materialise at such elevated levels and Q3 profits beat forecasts.
Even so, more lockdown restrictions are likely to possess hurt more small and medium sized businesses meaning bad loans could have crept higher again.
NatWest has broken bent the upside over 174p. The bulls are targeting 191p A level last seen in February 2020.