UK banks were still seeing a cushion of high deposit margins and low migration trends In February according to Credit Suisse’s analysis of data from the Bank of England.
Deposit volume trends, admittedly before the March banking crisis, were softer at -0.2% m/m and essentially have been flat since October, said the broker.
Mortgage approvals were up in the survey, but with net lending growth slowing further to 0.6% annualised in February it is too early to see how much might be related to the fourth-quarter turbulence or down to a more sustained level of slower mortgage lending, said the Swiss bank.
March data for deposit trends will be a more significant area of focus given increased investor debate on funding following SVB events, though up to now there has been little evidence of the surge in money market flows seen in the US.
Shares in UK banks have rallied a little since the collapse of SVB at the start of March and Credit Suisse’s rescue sparked heavy falls across the sector, but are still well below levels before the crisis.
Today, Lloyds was up 2% at 48p, Barclays 2.5% at 145.5p and Natwest 0.6% at 265.9p.