Bulletin: Court's Motor Finance Judgment Gives Some U.K. Banks Pause In A Strong Third Quarter - S&P Global Ratings’ Credit Research

Bulletin: Court's Motor Finance Judgment Gives Some U.K. Banks Pause In A Strong Third Quarter

Bulletin: Court's Motor Finance Judgment Gives Some U.K. Banks Pause In A Strong Third Quarter - S&P Global Ratings’ Credit Research
Bulletin: Court's Motor Finance Judgment Gives Some U.K. Banks Pause In A Strong Third Quarter
Published Oct 29, 2024
4 pages (1450 words) — Published Oct 29, 2024
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Abstract:

LONDON (S&P Global Ratings) Oct. 29, 2024--S&P Global Ratings today said that even as major U.K. banks maintained their strong earnings trajectory in the third quarter of 2024, attention has shifted toward a growing scale of remediation over historical commissions in the motor finance industry. Rated U.K. banks with material exposures to motor finance include Lloyds Banking Group PLC, Santander UK Group Holdings PLC, and to a lesser extent, Barclays PLC. Net interest margins (NIM) rose sequentially in the third quarter as recent headwinds from deposit migration and mortgage repricing have faded, even if Lloyds reported a 4 basis point (bp) sequential drag on NIM from its mortgage book in the quarter. The key factor in the improvement is the

  
Brief Excerpt:

...LONDON (S&P Global Ratings) Oct. 29, 2024--S&P Global Ratings today said that even as major U.K. banks maintained their strong earnings trajectory in the third quarter of 2024, attention has shifted toward a growing scale of remediation over historical commissions in the motor finance industry. Rated U.K. banks with material exposures to motor finance include Lloyds Banking Group PLC, Santander UK Group Holdings PLC, and to a lesser extent, Barclays PLC. Net interest margins (NIM) rose sequentially in the third quarter as recent headwinds from deposit migration and mortgage repricing have faded, even if Lloyds reported a 4 basis point (bp) sequential drag on NIM from its mortgage book in the quarter. The key factor in the improvement is the programmatic reinvestment of structural hedges at higher yields. For example, the gross return on Barclays' hedge stood at 2.1% in third-quarter 2024, rising from 1.5% for full year 2023....

  
Report Type:

Bulletin

Ticker
BARC@LN
Issuer
Barclays PLC
GICS
Diversified Banks (40101010)
Sector
Global Issuers, Public Finance, Structured Finance
Country
United Kingdom
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Court's Motor Finance Judgment Gives Some U.K. Banks Pause In A Strong Third Quarter" Oct 29, 2024. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Court-s-Motor-Finance-Judgment-Gives-Some-U-K-Banks-Pause-In-A-Strong-Third-Quarter-3276019>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Court's Motor Finance Judgment Gives Some U.K. Banks Pause In A Strong Third Quarter Oct 29, 2024. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Court-s-Motor-Finance-Judgment-Gives-Some-U-K-Banks-Pause-In-A-Strong-Third-Quarter-3276019>
  
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