Three of Britain’s biggest banks forecast to deliver robust profits when they publish half-year results
Three of Britain’s biggest banks are forecast to deliver robust profits when they publish half-year results this week, despite the downturn.
Data from Lloyds, Barclays and NatWest will be scrutinised for effects of the household squeeze.
Weak consumer confidence could dent demand for credit and there are signs the housing market is starting to slow.
Robust profits?: Data from Lloyds, Barclays and NatWest will be scrutinised for effects of the household squeeze
But lenders’ profits tend to be boosted as rates rise since they can make more money from borrowers.
Gary Greenwood, an analyst at Shore Capital, also said a ‘huge spike’ in charges from bad loans was not expected because banks, since the financial crisis, have become more averse to risky lending.
At Barclays, there could be further fallout from a blunder in the US. It has already revealed it sold billions of dollars more in structured products than it was allowed.
It has taken a £450million hit so far as it buys back the securities. But a recent report suggested volatility in US stock markets would cost it even more.
Read more at DailyMail.co.uk