March 1, 2012 / 8:36 AM / 6 years ago

STOCKS NEWS EUROPE-UK banks wane as Berenberg slashes estimates

Shares in UK-listed banks are under pressure as Berenberg Bank cuts its ratings, target prices and estimates across the sector, with Royal Bank of Scotland falling 1 percent on a double-downgrade to “sell” from “buy”.

Berenberg also cuts Standard Chartered to “sell” from “hold”, and reduces its respective target prices on all the UK banks including Barclays , Lloyds Banking Group and HSBC.

Berenberg says in a note the current repressed financial environment is a very poor one for bank profitability, but one which enables governments to reduce debt at the expense of risk-free asset holders.

“Those bank managements that recognise these issues and adjust strategies will be rewarded by the market; sadly, none has taken the chance so far. We see negative implications for UK banks. We downgrade our forecasts by 25 percent on average and are now 30 percent below consensus.”

To see a statement, please click

Reuters messaging rm://david.brett.thomsonreuters.com@reuters.net

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