Barclays PLC is expected to report a further charge in its H1 results following the recent disclosure of an SEC breach.
The control failure forced the bank to restate its FY21 numbers by £200m and make provisions for Q122 of £320m.
Barclays provided guidance that a 5% fall in the S&P is worth a £300m increase in recission costs and UBS expects with the S&P down 16% in Q2 there will be a further charge of £900m in the litigation.
UBS says Barclays looks well positioned with 1Q sales and trading double that of the primary and lending business. No major movement in credit quality is expected but UBS expects the focus to be on commercial credit risks.
Tier 1 is seen falling to 13.4% from 13.8% although no further share buybacks are expected.
The group is currently trading at 159p.