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Sep 6 2019, 07:35 IST/BST
Banks
PPI removes the shine from averting October ‘no-deal’ Brexit
- Sectors : Banks
- Companies : Virgin Money UK | RBS | Lloyds Banking Group
Ratings
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 |
DAVY VIEW
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.
