Royal Bank of Scotland Group Plc, Britain’s biggest publicly owned lender, named the head of its U.K. consumer unit chief executive officer as the government presses the lender to shrink its investment bank.
HSBC Holdings Plc and Standard Chartered Plc, the two U.K. banks most reliant on Asia for earnings, may next week say profitability in the region is being squeezed by both international and domestic competitors.
Nationwide Building Society, the U.K.’s biggest customer-owned lender, said profit margins will come under pressure this year and next amid “aggressive” competition for deposits from state-owned banks.
Lloyds Banking Group Plc, Britain’s biggest mortgage lender, posted its fourth consecutive annual loss after earmarking 3.5 billion pounds ($5.8 billion) to compensate clients mis-sold products including loan insurance.
Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc are set to post losses for 2011 this week before returning to profit as the state-controlled U.K. banks cut thousands of jobs and finish a series of writedowns.