Good position in U.K. retail banking. Conservative loan book profile compared to peers. Solid capitalization by our measures. U.K. recession and interest rate cuts owing to the COVID-19 pandemic are weakening asset quality and weighing on profitability. Weakening cost-to-income ratio trajectory is showing signs of stabilization, although net interest margin (NIM) and investment pressures will persist. Lower revenue and business diversification than its larger U.K. competitors. The negative outlook reflects our expectation that, despite its good market position, the bank will endure weakened asset quality and earnings over our two-year outlook horizon as a result of the economic and market impact of the COVID-19 pandemic. It also reflects our expectation that the bank will steadily expand its market position in
