Bulletin: Growing Net Interest Income Underpins U.K. Banks? Third-Quarter Earnings

This report does not constitute a rating action. LONDON (S&P Global Ratings) Oct. 29, 2025--S&P Global Ratings today said that a continued net interest income tailwind propelled the four largest U.K. banks? underlying performance in the third quarter of 2025. Regulatory and legal charges weighed on three of the banks? statutory profits, but the sector is able to manage these expenses. Banks? earnings flexibility and strengthened credit risk fundamentals contributed to us improving the U.K. Banking Industry Country Risk Assessment economic risk score to '3' from '4' in September 2025 (see ? Positive Actions Taken On Lloyds And NatWest On Strong Foundations Of U.K. Financial System ," Sept. 10, 2025). All four banks-- Barclays PLC , HSBC Holdings PLC ,

...October 29, 2025 This report does not constitute a rating action. LONDON (S&P Global Ratings) Oct. 29, 2025--S&P Global Ratings today said that a continued net interest income tailwind propelled the four largest U.K. banks' underlying performance in the third quarter of 2025. Regulatory and legal charges weighed on three of the banks' statutory profits, but the sector is able to manage these expenses. Banks' earnings flexibility and strengthened credit risk fundamentals contributed to us improving the U.K. Banking Industry Country Risk Assessment economic risk score to '3' from '4' in September 2025 (see "Positive Actions Taken On Lloyds And NatWest On Strong Foundations Of U.K. Financial System," Sept. 10, 2025). All four banks--Barclays PLC, HSBC Holdings PLC, Lloyds Banking Group PLC, and NatWest Group PLC--raised their 2025 revenue guidance due to growing structural hedge yields, solid domestic loan growth, and improving noninterest income. At the same time, cost discipline generated...

Bulletin