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You necessary guide to British banking shares

We have three different things to think about when we consider the British banks – Lloyds (LLOY), NatWest, (NWG) Barclays (BARC) and HSBC (HSBA). Well, OK, only three things after those useful details of whether the traders have enough toot to dust cleavages and other such essentials.

The first banking essential is interest rate margins, the second is how much are they going to lose to people going bust (this being different from cleavages) and the third is how UK focused are they? With these three, and these three alone, we’ve got a pretty good guide to how British bank shares should do.

3 thoughts on “You necessary guide to British banking shares”

  1. Sorry, but it’s four. The cost:income ratio.
    Bad debts after charged against net income after operating costs, so a bank with an 80% cost:income ratio can go bust with the same interest margins and bad debt ratios as a profitable bank paying generous dividends with a 60% cost:income ratio.

  2. @John77 Wasn’t that addressed in the paragraph with the caveat regarding powdered sugar served on front ends of scantily clad prime examples of sexual dimorphism?

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