UK banks defy gloom with higher interest rates and robust quality

Britain’s biggest banks, including HSBC (HSBA.L) and ​NatWest (NWG.L), are set to follow their European counterparts and raise profit targets when they report annual earnings in the coming weeks, ‌people close to the matter said.

HSBC is expected to lift its return on tangible equity (ROTE) outlook – a key measure of profitability – above its current “mid teens or better” guidance, while NatWest is likely to upgrade its guidance for 2027, currently at 15 per cent, to as much as 17 per cent, two people told Reuters.