S&P Global – U.K. Banking Outlook 2025

The report by S&P Global "U.K. Banking Outlook 2025" explores the resilience of U.K. banks amidst economic conditions and regulatory landscapes. Our stable outlooks on all U.K. bank ratings indicate expected resilience through 2025, with potential for positive rating actions if economic conditions improve. Stable earnings and controlled credit risk should support robust capital positions, allowing for shareholder distributions. Despite mixed reactions to government policies, steady economic growth is anticipated, supported by rate cuts and a strong labor market. Credit loss charges are expected to normalize, with minimal impact on capital ratios from historical motor finance issues. Overall, funding and liquidity metrics are projected to remain stable.