Lloyds Banking Group PLC (LSE:LLOY) and HSBC Holdings PLC (LSE:HSBA) are among the lenders best positioned to benefit from a rise in interest rates under the coverage of equity analysts at Credit Suisse Group AG (NYSE:CS).
The lenders are net-interest-income-sensitive over three to five years from a 100 basis point move, analysts including Omar Keenan and Jon Peace wrote in a note to clients.
“While growth concerns after the Russia-Ukraine crisis have increased, policy rate expectations for the next 12 months have continued higher in March as the market digests messages from central bankers,’’ the analysts wrote.
“Rate sensitivity will be an important feature in sector revenue trends and stock selection in the next 12 months.”
The Bank of England raised its key base rate last week for a third time in four months to curb inflation. The market anticipates rates may rise from 0.75% to 2% by the end of the year.