Despite the economic crisis, it is anticipated that three of Britain’s largest banks will report solid profits this week when they release their half-year results.
The information from Lloyds, Barclays, and NatWest will be analyzed to determine the effects of the household squeeze.
Weak consumer confidence might reduce lending demand, and there are indications that the housing market is beginning to decline.
However, lenders’ earnings tend to increase as interest rates rise because they may earn more from borrowers.
Gary Greenwood, an analyst at Shore Capital, stated that a “big jump” in charges from bad loans was not anticipated because banks have become more risk-averse since the financial crisis.
A mistake in the United States could have additional repercussions at Barclays. It has previously disclosed that it marketed more structured goods than permitted.
It has incurred a loss of £450 million as a result of repurchasing the securities. A recent analysis, however, revealed that volatility in U.S. stock markets may be considerably more costly.
