Several of the UK’s largest banks, including HSBC and NatWest, are preparing to increase their profitability forecasts as they issue annual results in the coming weeks, reported Reuters citing sources.
HSBC is expected to raise its return on tangible equity (ROTE) guidance, which currently stands at “mid teens or better.”
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NatWest is also estimated to be considering a revision of its 2027 ROTE target from the present 15% up to 17%, according to the unnamed sources.
Barclays, which last year projected a ROTE of at least 12% for 2026, is likewise anticipated to improve its targets.
The upcoming earnings releases for Barclays and HSBC are scheduled for 10 February and 25 February, respectively.
Across continental Europe, banks have already moved to upgrade profit expectations, indicating that they believe recent margin improvements could be sustained for some time, noted the news agency.
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By GlobalDataLloyds Banking Group may also revise its targets later this year.
All banks mentioned declined to respond to requests for comment.
Elsewhere in Europe, Spanish lenders Santander and BBVA have managed to grow revenue while keeping costs restrained, highlighted the report.
Meanwhile, in November, Deutsche Bank announced an updated ROTE goal for 2028 of over 13%, surpassing its 2025 benchmark of 10%.
The German bank anticipates its revenues will grow at a compound annual rate exceeding 5%, increasing from a projected €32bn ($38.06bn) in 2025 to approximately €37bn by 2028.
The cost/income ratio target is set below 60% by 2028, compared with the 2025 target of below 65%.
The bank also intends to raise the payout ratio to 60% of net profit attributable to shareholders, starting 2026.
