Skip to content
Subscriber Only

U.K. Banks Face 25% Earnings Hit From No-Deal Brexit, Citi Says

  • Revenue at risk of slower economic growth, low interest rates
  • No-deal departure might already be priced-in, analysts write
1482163312_307384961
Photographer: Chris Ratcliffe/Bloomberg

As the likelihood of Britain crashing out of the European Union without a trading agreement rises, Citigroup Inc. estimates that such an event could cut domestic banks’ earnings by as much as 25%.

A “no-deal exit” would curtail the revenue of high street lenders as economic growth slows and interest rates remain depressed, analysts including Andrew Coombs wrote in a note to clients Friday.