Britain’s banks brace for $22 billion loan losses as outlook darkens By Reuters

© Reuters. FILE PHOTO: HSBC and Barclay’s buildings are lit up at dusk in the Canary Wharf financial district of London


By Iain Withers and Lawrence White

LONDON (Reuters) – Britain’s banks took a gloomier view than almost all their European peers in their second quarter earnings, as coronavirus fears, Brexit and low interest rates caused them to bake tougher “worst-case” scenarios into their risk models.   

Investors had expected a torrid set of half-year results, but Barclays (L:), Standard Chartered (L:), Lloyds (L:), NatWest Group (L:) and HSBC (L:) fell short of these low expectations.

Provisions for potential loan losses across the five banks topped $22 billion, blowing past analyst forecasts and increasing selling pressure on shares already hammered by the pandemic this year.

By contrast, France’s BNP Paribas (PA:) and Credit Suisse (S:) beat analyst forecasts, benefiting from bumper trading volumes as well as relatively modest provisions.

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An overwhelming majority of Americans want Congress to put political divides aside and send out a second round of stimulus checks.

A Fortune-SurveyMonkey poll* of 2,802 U.S. adults between July 17 and 21 finds 80% of U.S. adults support the federal government issuing a second round of stimulus checks. That’s up from 54% of U.S. adults who supported a second of stimulus checks back when Fortune-SurveyMonkey polled U.S. adults between May 20 and 26.

Both Democratic and Republican leaders support sending another round of $1,200 stimulus checks to Americans, however, any such proposal would be passed as part of a more expansion stimulus package. And the other items of such a bill, like state funding and expired enhanced unemployment benefits, are what the … Read More