UK banks to take hit on quarterly earnings

The UK’s top banks are set for one of their worst first-quarter earnings seasons since the financial crisis, adding to their struggle to win over investors against a backdrop of misconduct charges, a weak economic outlook and uncertainty over Brexit.

Despite shoring up their capital bases and paying out strong dividends, the five biggest banks — HSBC, Barclays, Standard Chartered, Lloyds Banking Group and Ulster Bank owner Royal Bank of Scotland - have collectively seen their shares fall about 11 percent this year against a 1.5 percent rise in the FTSE 100 .FTSE.

The costs of laying off staff, compensating customers missold loan payment protection insurance and stockpiling cash to settle outstanding lawsuits and regulatory investigations are all expected to compound the hit to quarterly profits from record-low interest rates.