UK Banks Brace for Budget Tax Decisions Amid Profit Reports

Major banks anticipate robust earnings despite falling interest rates and potential tax hikes in the upcoming budget.

Britain's major banks, including Lloyds, Barclays, and NatWest, are set to release third-quarter results showing resilient profits despite recent interest rate reductions.
Analysts expect Lloyds' profits to dip slightly, while Barclays and NatWest are projected to report modest profit increases compared to last year.
Speculation surrounds the potential for increased taxation on banks in the Labour government's upcoming budget, as Chancellor Rachel Reeves aims to address public finances.
Lower interest rates have led to increased competition in the mortgage market, impacting net interest margins and income for banks.
Despite economic uncertainty and geopolitical tensions, lending activity shows signs of improvement, with expectations of further recovery post-budget announcement.