The Lloyds share price will be watched closely on Monday as the market reflects on the company’s refocus on growth. The LLOY stock price is trading at 46.50p, which is about 2.30% above its lowest level this month.
Shift to growth
Lloyds Bank is changing. This year, the company received a new Chief Executive and Chairman. According to the Financial Times, the new CEO is mulling major changes in a bid to rejuvenate the company.
The paper said that the bank is considering quadrupling its budget for Citra Living from 250 million pounds to 1 billion pounds. Citra is a company that aims to become a leading player in the UK’s property market. It hopes to have about 10,000 residential properties by 2025 and 50,000 by 2030.
The company is also considering other options in its attempt to diversify from its traditional retail banking and lending. Other options include expanding the company’s commercial branch by targeting corporate and institutional customers.
He also plans to boost its presence in currency trading, insurance, and wealth management. The wealth management division is key since the current CEO was the head of the division at HSBC. Its differentiating factor is that it will cater to wealthy people with up to 1 million pounds to invest. This will be unlike other wealth managers that target ultra-rich individuals.
Lloyds share price forecast
The daily chart shows that the Lloyds share price has been under intense pressure in the past few weeks. The stock has declined by more than 10% from its highest level this week. A closer look shows that it has formed a cup and handle pattern. In price action analysis, this pattern is usually a bullish sign. The stock is also slightly above the ascending trendline shown in purple.
Therefore, there is a likelihood that the LLOY share price will bounce back as investors target the year-to-date high of 51p.
