UBS Backs UK Banks as Attractive After Regulatory Rollbacks

UBS maintained buy ratings on Barclays, NatWest and Lloyds, citing attractive valuations of 7.7x 2027 earnings despite deposit competition. The stance follows a three-week policy shift that began on 16 May with government plans to loosen ring-fencing and culminated on 30 May when the Bank of England signalled it would ease the leverage ratio and scrap Rule 9.1. Treasury estimates put the cumulative lending boost at up to £80bn for businesses plus a £1.6bn City of London windfall, measures expected to expand bank capacity while leaving longer-term stability questions unresolved.