UK macro data continues to surprise positively, but the same is no longer true of bank volumes. Mortgage loan growth slowed “slightly” in 4Q16, while corporate loan balances contracted, “as a combination of higher stamp duty and Brexit -related fears” served to delay investment decisions and dampen loan demand, say Citi’s analysts.
The UK’s seven biggest banks which participated in the Bank of England (B0E)’s stress tests not only passed them, but were graded for their resilience to a range of adverse shocks, including a strong slowdown in growth in China and sharp falls in oil and raw material prices. Santander’s performance in the tests stood out, demonstrating that it is one of the lenders which is in best shape.
Spain, along with the UK and Ireland have been the most active portfolio transaction markets in Europe given that banks locally have been very active in cleaning up their balance sheets, a report by PwC points out.
LONDON | July 9, 2015 | UBS | At one simplistic level the UK budget contained only ‘small’ news, with the net borrowing forecasts not changing too much. But the reality was this was a budget with a huge number of important announcements. For one, it reduced the near-term pace of fiscal consolidation. For another, it spelt out how the government intends to reduce the size of the welfare state.
The Corner | March 20, 2015 | ACF experts believe that “the impact of the acquisition of TSB in earnings per share would be marginally negative in 2015 and 2016, but -5.7% in 2017 if a new synergy plan is not presented.”
LONDON | The Corner | The issue of capital tension has been the key driver of BNP Paribas’ UK bank recommendations over the last nine months, and this remains the case. These experts have no Outperform ratings with the exception of Lloyds – which should broadly meet all three parts of the UK framework within 18 months. They believe this consultation is particularly unhelpful to Barclays.
LONDON | By Victor Jimenez | The British Parliament seeks to reorganise management at UK banks so it’s possible to point at specific staff and board members and try them in court.
LONDON | Changes over core capital reserves would have turned British banks less transparent about their actual financial stand, JP Morgan analysts alert. Also, growing risk of impending payouts because of mis-sold payment protection insurance could affect their stock price sooner than later.