UK investors turn bullish on ‘big four’ banks after bumper earnings
Though tailwinds are strong for now there are worries ‘markets have moved well ahead of the economic reality’
UK investors have started to warm toward Britain’s largest banks after a bumper quarterly earnings period but some are concerned “the easy wins may be over” with much of the positive vaccine and economic recovery news fully priced in.
This year the ‘big four’ banks have seen a stunning reversal of fortunes, delivering Q1 earnings above and beyond analysts’ expectations.
HSBC and Natwest, formerly RBS, saw profits rise 80% in the first three months of 2021, while Barclays’ nearly tripled to £2.4bn.