Barclays remains The Share Centre's preferred bank

Following Lloyds' return to profit, Nick Raynor, investment adviser at The Share Centre, comments on the bank's results and explains why Barclays is still the retail stockbroker's preferred bank.

"Lloyds Banking Group, which is 41% owned by the British taxpayer, has reported a return to profit for the first quarter of the year and expects this momentum to continue throughout 2010. The bank's results were boosted by its wholesale banking division.

"Although the bank's share price rose in anticipation of this morning's results, the absence of quantifiable figures caused it to fall back from these early highs to 70.90p.

"We continue to list Lloyds as a ‘hold', but those who feel brave may wish to consider the bank as a long-term play. However, Barclays remains our bank of choice for investors looking for growth and income within the sector.

"Last week we upgraded Barclays from a ‘hold' to a ‘buy'. We admire the bank's strength in its refusal to be bailed out by the government, instead opting to take matters into its own hands. Barclays even managed to take advantage of the industry crisis by acquiring assets at a lower cost.

"Investors looking for income will be attracted by Barclays' ability to reward its shareholders; something part taxpayer owned banks are unable to do. The bank is currently offering a final year dividend of 2.5p.

"Barclays is also in a stronger position to others in the sector because of its international exposure. The likes of Lloyds and RBS will also be more susceptible to the effects of a hung parliament."