This Labour government poses little threat to Lloyds Banking Group PLC (LSE:LLOY) and the other the UK banks, according to analysts at Wall St bank Citi.
Near-term implications from a Labour government are limited, Citi adds, with this quarter tipped to mark the trough for UK domestic bank NIMs [net interest margins].
“In turn, we expect all of the UK banks, domestic and international, to increase revenue guidance with interim results.
“This should be taken well.”
Citi adds it is above consensus forecasts for pre-tax profits across the board but mostly so for Standard Chartered.
It likes all the banks but its order of preference is HSBC followed by Barclays, Lloyds, and Natwest (all buys), with Standard Chartered a hold.
HSBC and Barclays are also among Citi’stop-picks across all European banks.