Royal Bank of Scotland Group Plc executives said the government may start reducing its 81 percent stake as soon as next year even as the bank posted a bigger- than-estimated decline in first-quarter operating profit.
Lloyds Banking Group Plc, Britain’s biggest mortgage lender, may signal the end of an era of surging loan impairments and provisions for improperly sold insurance when it reports first-quarter earnings this week.
Barclays Plc, the first U.K. lender to report first-quarter results, may report a rise in profit at its investment bank, helped by gains in the U.S. as Europe’s sovereign debt crisis crimps income from the region.
Barclays Plc Chief Executive Officer Antony Jenkins’s pledges to shred the legacy of his predecessor and fix the lender’s culture are distracting from the difficulty he has in reviving profit at Britain’s biggest investment bank.
U.S. stocks tumbled, capping the biggest weekly drop since January, as criminal investigators took aim at Goldman Sachs Group Inc. and technology shares slid after MEMC Electronic Materials Inc. posted a loss.
Britain’s five biggest banks, including HSBC Holdings Plc and Barclays Plc , may say profit soared to 8.4 billion pounds ($13.1 billion) in the first half as falling bad loan provisions mitigate slowing growth in investment-banking revenue.
Britain’s new bank levy will have a “minimal” impact on U.S. investment banks with operations in London, with Goldman Sachs Group Inc. likely to pay only a sixth of the bill it faces for the bonus tax.