PPI removes the shine from averting October ‘no-deal’ Brexit

  • Sectors : Banks
  • Companies : RBS | Virgin Money UK | Lloyds Banking Group


Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Virgin Money UK NEUTRAL 28/05/19 N/A N/A 110p
Lloyds Banking Group OUTPERFORM 28/05/19 Neutral 14/02/18 50.0p
RBS NEUTRAL 11/02/19 N/A N/A 190p


The prospect of a ‘no-deal’ Brexit in October is on the verge of being averted – good news for UK banks, but the end of payment protection insurance (PPI) has come with a significant sting in the tail, with increased claims leading to an unwelcome bout of provision increases. This hurts capital and therefore returns at a time when growth is held back by the rate environment, mortgage competition and economic/political uncertainty.

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Sep 6 2019, 07:35 IST/BST