MARKET TALK: Levy Impact On UK Banks Minimal - Matrix

23rd Jun 2010 13:23

1223 GMT [Dow Jones] The impact of the proposed bank levy on UK banks is likely to be minimal and much more benign than the worst-case scenario some market participants may have been expecting, says Matrix Group. In particular, reckons concerns about Lloyds Banking Group (LLOY.LN) being significantly affected are unwarranted. Matrix's analysis shows the percentage impact on Lloyds' net profit should be in the low-to-mid single digits. Given this greater assurance on the effects of the bank levy, Matrix reiterates its buy rating on Lloyds with a target price of 80p. Does not cover Royal Bank of Scotland (RBS.LN) but notes it potentially incurs the most substantial impact on its net profit among the UK banks, due to the later recovery in its earnings and the very large size of its balance sheet. Lloyds shares +2.6% at 60p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 23, 2010 08:23 ET (12:23 GMT)