DBRS Publishes FY18 UK Banks’ Commentary

DBRS Ratings Limited (DBRS) published a commentary titled “DBRS: UK Banks’ Strong Cost Discipline Supports Performance in 2018”.

Summary highlights of the commentary include:

• UK Banks’ aggregate pre-tax profit in 2018 was GBP 27.6 billion, up 12% YoY.
• Drag from non-recurrent items reduced, mainly due to substantial decline in restructuring expenses.
• Overall growth of underlying profits had some positive impact as well.
• Reduced drag from non-recurrent items, and strong cost discipline led to YoY improvement in statutory cost-to-income ratios for most UK banks.
• Further improvement in cost efficiency is possible, however banks are facing political and economic headwinds.

This commentary is available at www.dbrs.com.