Major U.K. Banks--Profits Still Good, But Key Rating Threats Are Expected to Linger Aug 02
Standard & Poors, August 2002
Abstract
The ratings on the major U.K. banks remain broadly stable despite the mixed performance highlighted in their results for the first half of 2002. Profits remain strong, with ROE remaining above 20%. There are some concerns over the upturn in provisions, however, and weaker equity markets are also affecting some banks. Increased provisions indicate a weaker asset quality picture, as well as being due to lending volume growth. Although provisions increased across the sector, the problems so far have centered on a number of larger corporate clients, particularly in the U.S., and the effect of the Argentine crisis. There were high headline increases in provisions compared with the first half of 2001, such as a 43% increase at Barclays PLC...
Companies mentioned in this report are:
- National Westminster Bank PLC
- Bank of Scotland PLC
- Barclays Bank PLC
- United Kingdom (Unsolicited Ratings)
- Halifax PLC
- Lloyds TSB Bank PLC
- Standard Chartered Bank
- The Royal Bank of Scotland Group PLC
- Scottish Mutual Assurance Ltd.
- HSBC Holdings PLC
- HSBC Bank Brasil S.A.
- HBOS PLC
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
- National Westminster Bank PLC
- Bank of Scotland PLC
- Barclays Bank PLC
- United Kingdom (Unsolicited Ratings)
- Halifax PLC
- Lloyds TSB Bank PLC
- Standard Chartered Bank
- The Royal Bank of Scotland Group PLC
- Scottish Mutual Assurance Ltd.
- HSBC Holdings PLC
- HSBC Bank Brasil S.A.
- HBOS PLC
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