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Barclays PLC and Lloyds Banking Group are scheduled to report
this week and emerging markets-focused HSBC Holdings and
Standard Chartered next week.
While second quarter results are unlikely to capture any impact
from the outcome of last month's Brexit referendum, all eyes are
on the outlook as banks prepare for slower economic growth and a
possible UK recession.
Banking shares are among the worst performers among UK bluechips
in the month since the referendum result. Both RBS and Lloyds
have lost more than a quarter of their value since then.
Goldman expects banks will cut forecasts for loan growth with
Lloyds and RBS likely to be hit the most by slower mortgage
lending. An expected rate cut from the Bank of England next
month would add additional pressure on margins for some banks
especially if inflation ticks higher.
The U.S. bank's top picks in the sector are Standard Chartered
for its non-UK exposure and RBS on the back of valuation and
stronger capital position.
(Reporting by Vikram Subhedar; editing by John Stonestreet)
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