U.K. Banks Earnings Potential Increasingly Attractive

Dow Jones06-24

1030 GMT - U.K. banks will grow their earnings faster than the broader sector over the next three years, Berenberg analysts write. The outsized earnings potential isn't yet reflected in U.K. banks' share prices, with stocks remaining cheap despite a recent rally, they say. Barclays, Lloyds Banking Group and NatWest "are as attractive as ever, offering sustainably improving returns underpinned by robust balance sheets." Earnings growth will be driven by banks swapping out floating deposit income--assets that fluctuate with changing interest rates--for fixed-rate assets, smoothing their net interest income, the analysts write. "This tailwind will more than offset near-term headwinds."( josephmichael.stonor@wsj.com)

 

(END) Dow Jones Newswires

June 24, 2026 06:30 ET (10:30 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment