Must read: Barclays, Lloyds Bank, NatWest, Standard Chartered

ii’s head of investment looks ahead to some of the big events in the diary next week.

24th April 2026 09:42

by the interactive investor team from interactive investor

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UK banks

The read across from the recent quarterly reporting season for the US banks was positive, but the UK equivalents will have their own point to prove.

Often viewed as solid and dependable rather than racy, UK banks are currently generating high levels of cash, which is being put to any number of uses. These include acquisitions, investment in technology and generous shareholder returns, each of which will be scrutinised over the next couple of weeks.

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Amid the ongoing conflict in the Middle East, concerns have grown for higher inflation and crimped consumer spending, which has left the banking sector down in the year to date for the most part. As such, levels of customer defaults and impairment charges for possible bad debts will be central for sentiment.

In a similar vein, interest rates are now expected to remain higher for longer which, all things being equal, should be positive for the sector. However, it also raises questions around mortgage availability and affordability, such that reported loan demand will be under the spotlight.

Despite a recent rerating of the sector, which has left each of the UK banks’ share prices significantly higher over the last year, they remain undemanding in terms of valuation and are trading at a significant discount to their European, let alone US, peers. As such, a positive set of results could lead the sector higher once more.

Barclays Q1 (Tuesday 28 April)

Barclays (LSE:BARC) remains the preferred play in the sector, with the market consensus of the shares as a strong buy reflecting the group’s financial strength and geographical and business diversity.

Highlights are likely to revolve around the integration and profitability of the recently acquired Tesco Bank, and the US investment banking operation, which will likely have seen a noticeable benefit from the recent market volatility in the trading arm, as seen in the US. Meanwhile, its huge credit card business will be the subject of focus on both sides of the pond for any deterioration in consumer defaults.

Lloyds Banking Q1 (Wednesday 29 April)

Often seen as a barometer for the UK economy, Lloyds Banking Group (LSE:LLOY) will likely have continued its strong progress, especially within its large mortgage business despite the headwinds in force for the UK consumer. Customer deposits have also been a positive focus lately, while the provisions for the motor finance redress now seem to be sunk and therefore contained.

Updates will also be sought in the group’s focus on the mass affluent customer sector, where the recent acquisition of Schroder Personal Wealth was a statement of intent and also on its inexorable progress in digitalising its business which in turn reflects on a lower cost/income ratio.

Standard Chartered Q1 (Thursday 30 April)

Some years ago, Standard Chartered (LSE:STAN) was the darling of the UK banking sector and its recent performance has reignited some of that positive sentiment, with the group’s share price gains topping the table in the sector over the last year.

Its concentration in Asian markets is an attractive prospect both in terms of its move towards the affluent market via its Wealth Solutions unit, with particular promise seeming to emanate from India. In addition, investors will be keen for a positive update from its trading unit, while perhaps most importantly a strategic update is due, which could provide a springboard for further gains.

NatWest Q1 (Friday 1 May)

Now finally free of its government share stake shackles, NatWest Group (LSE:NWG) is now enjoying a new lease of life. Its prodigious cash generation has enabled a generous round of shareholder returns, while it apparently remains on the acquisition trail, even if some questioned the £2.7 billion price paid for its recent purchase of Evelyn Partners in the wealth management space.

In a similar vein to Lloyds given its largely domestic focus, growth in loans and deposits balances would be well received, while its “intelligent approach to risk” should contain the level of potential customer defaults. NatWest is currently in something of a sweet spot and is pushing Barclays in being seen as the favoured play in the sector.

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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