On Friday, Lloyds share price closed with a market gain of 2 per cent. The surge in price came amidst weeks of continued drop.
In the past few months, Lloyds Bank has struggled with the rising cost of living, which has seen most of its 26 million customers struggle. Last week, Lloyds contacted 2 million of its 26 million customers after identifying them as a group that was likely to need extra help to cope with soaring food and energy prices and rising debt costs.
Lloyds indicated that it contacted potentially vulnerable customers on a large scale to help them manage their finances and not default on loans. Some of the company’s help included debt consolidation, household budget reviews, and spending control. The move comes after the UK announced recent inflation numbers that indicated the UK’s consumer price index had risen by 9.1 per cent in June. This is the highest level of inflation in 40 years.
In another report by the financial institution, data showed that the demand for debt services had jumped by 30 per cent. The data was a clear indication of the rising cost of living that is pushing the bank’s customers into debt. In the same report, the chief executive of Lloyds, Charlie Nunn, added that 80 per cent of its 26 million customer base had an account that had less than £500 of savings in their current and savings accounts. Again, the bank, which many experts mainly consider the bellwether for the UK economy, sends clear signs of the dire economic environment it is operating in.
Lloyds Share Price Analysis
Based on the numbers above and the data from the past few weeks, I expect Lloyds shares to remain in a bearish trend. There is a high likelihood of the share price dropping to trade below the 40p price level in the next few trading sessions.
The long-term analysis is also dire for this cryptocurrency; according to projections, the UK inflation rate could hit 11 per cent later this year. This will mean a continued struggle for Lloyds Bank’s core customers, which may affect its bottom line. However, my analysis will be invalidated if the economy improves.
Lloyds Daily Chart
