Robust mortgage lending in the Bank of England’s latest monthly money and credit statistics underlines the appeal of the UK bank sector, according to Goldman Sachs (NYSE:GS).
Net new mortgage lending trends are still well above the 2016-2020 period, says the US bank, though less so against 2021.
Credit card lending is also well ahead of the pre-Covid comparable periods while deposit balances remain stable at a high level, with continued inflows in household deposits (+£4bn).
“We continue to think tailwinds from higher rates outweigh credit cost concerns for UK banks and reiterate our Buy ratings on NatWest (conviction list), Lloyds, Barclays and Standard Chartered."