JPM Still Positive on U.K. Banks After BoE Rate Path Comments -- Market Talk

Dow Jones05-10

0652 GMT - The Bank of England's rate-path comment doesn't alter JPMorgan's positive view on the country's lenders, analysts write in a note after the central bank held its key rate on Thursday but signaled cuts ahead. U.K. banks such as NatWest, Lloyds Banking Group and Barclays have relatively low sensitivity to short rates compared to long rates, so the steepness of the yield curve will be the key focus throughout the rate cycle, they say. "The negative impact of lower short rates will largely be offset by the positive impact of rolling structural hedges in 2025/26," they write. JPM's data on deposit pricing and mortgage competition--the variables that will impact net interest income going forward--suggests that net interest margin trends have continued to be stable year to date. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

May 10, 2024 02:52 ET (06:52 GMT)

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U.K. banks such as NatWest, Lloyds Banking Group and Barclays have relatively low sensitivity to short rates compared to long rates, so the steepness of the yield curve will be the key focus throughout the rate cycle, they say. \"The negative impact of lower short rates will largely be offset by the positive impact of rolling structural hedges in 2025/26,\" they write. JPM's data on deposit pricing and mortgage competition--the variables that will impact net interest income going forward--suggests that net interest margin trends have continued to be stable year to date. (elena.vardon@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  May 10, 2024 02:52 ET (06:52 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>JPM Still Positive on U.K. Banks After BoE Rate Path Comments -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nJPM Still Positive on U.K. Banks After BoE Rate Path Comments -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-10 14:52 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://dowjonesnews.com/newdjn/logon.aspx?AL=N><strong>Dow Jones</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>0652 GMT - The Bank of England's rate-path comment doesn't alter JPMorgan's positive view on the country's lenders, analysts write in a note after the central bank held its key rate on Thursday but ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LYG","symbol_name":"劳埃德","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2434883175","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2434883175","pubTimestamp":1715323920,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0652 GMT - The Bank of England's rate-path comment doesn't alter JPMorgan's positive view on the country's lenders, analysts write in a note after the central bank held its key rate on Thursday but signaled cuts ahead. 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U.K. banks such as NatWest, Lloyds Banking Group and Barclays have relatively low sensitivity to short rates compared to long rates, so the steepness of the yield curve will be the key focus throughout the rate cycle, they say. \"The negative impact of lower short rates will largely be offset by the positive impact of rolling structural hedges in 2025/26,\" they write. JPM's data on deposit pricing and mortgage competition--the variables that will impact net interest income going forward--suggests that net interest margin trends have continued to be stable year to date. 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