Download full report with analyst certification and important disclosures
Sep 6 2019, 07:35 IST/BST
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|
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.