Week ahead

Banks to defy Brexit, but suffer PPI charges

RBS banknoteBanks are expected to report stronger trading figures this week in defiance of a squeeze on profits caused by the Brexit talks.

Consumer spending has held up while unemployment has fallen and demand for mortgages and business loans has only tailed off slightly. Economists now expect Britain to avoid a recession.

However, there will be higher PPI charges an RBS is due to report another loss.

Third quarter numbers will be the first to cover the trading period since the EU referendum, which included the first interest rate cut since 2009.

Wednesday: Lloyds Banking Group will say it is making an additional £750 million contribution to PPI provisions and set aside a sum to cut the company’s pensions deficit.

Thursday: Barclays is expected to report third-quarter profit before tax only slightly from £1.4 billion a year ago.

Friday: RBS is expected to report a loss of £231m to meet ongoing restructuring and litigation charges, according to analysts. The bank is also expected to update on the Williams & Glyn disposal with speculation mounting that the European Commission will take control of the business and sell it.



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