Lates News

Berenberg analysts wrote that the profitability growth rate of the UK banking industry over the next three years will be faster than the broader sector. This significant profit potential has not yet been reflected in the stock prices of the UK banking industry, despite recent rebounds, but the valuations of these stocks are still low. Barclays, Lloyds Bank, and NatWest "continue to be attractive, providing sustained improvement in returns supported by strong balance sheets." The driver of profit growth will be banks converting floating deposit income into fixed rate assets, smoothing their net interest income. "This favorable factor will be enough to offset the impact of recent unfavorable factors."