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)
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