Experts say Britain’s banks are ready to assure customers and businesses of their support as tariffs indicate a “watershed” moment for the economy.
Some of the country’s largest high street lender will publish their latest financial results next week.
Updates come at an important time for the global economy, this month is expected to disrupt trade and slow growth in many countries this month with the new American tariff declared by President Donald Trump.
The International Monetary Fund (IMF) warned this week that the global trade system was entering a “new era” and uncertainty killed the “unprecedented” levels.
While the latest banking results will cover the first three months of 2025, before major tariff announcements, lenders are expected to give an update to how they are responding to widespread instability.
Peter Rothwell, the head of banking in KPMG UK, said the UK banks are “likely to emphasize their commitment to the UK for retail and business customers”.
“I think you will hear banks saying that there is no reason to believe that it is not manageable, and they are ready to bend to help limit the effect as far as possible, but it’s too early to tell … They are not watching many signs at this time, but they remain attentive, and focus on support, and are ready to support,” Sri Rothwell suggested.
This can prepare more lenders to enhance businesses to require financial assistance, especially at a time when others could pull back.
Sri Rothwell described it as a “watershed” moment, saying: “There are many opportunities in the form of danger.”
The reporting season will kick with HSBC on Tuesday, followed by Barclays and Sentnder, Lloyds on Wednesday and Natwest on Thursday and Friday.
Investors will be particularly HSBC and Barclays as well as London-list standard chartered, which have a higher risk for global trade disruption.
AJ Bell analysts stated that investors would seek the results of HSBC for an update on Outlook for their Asia operations-which generated three-fourths of its total pre-profit profit last year-due to the impact of tariffs on China.
In addition, they can highlight the effect of recent disturbance in the financial markets sparked by tariffs on their investment banking and trading divisions.
Mr. Rothwell of KPMG stated that some “paralysis” arose in the market due to merger and acquisition, consultant work such as deal-making, including “challenged by market conditions”, recent instability.
High Street Banking Group Lloyds is expected to take a slight dip in their previous-quarter pre-tax profit, which ranked £ 1.6 billion to £ 1.5 billion a year ago.
The bank has separated £ 1.2 billion to cover the possible compensation costs related to the provision of Motor Finance Commission, which has been dragged on its annual earnings.
