Top banks to watch as UK elects Liz Truss as Prime Minister

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Top banks to watch as UK elects Liz Truss as Prime Minister

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 Top banks to watch as UK elects Liz Truss as Prime Minister
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Highlights

  • Tory frontrunner Liz Truss said she believes in the independence of the Bank of England.
  • She said it wouldn’t be unfair to countermand the bank and decide the rates

Tory frontrunner Liz Truss seems to be rowing back on a few signs that she might re-examine the Bank of England’s (BoE) power to set the interest rates. Truss has recently said that it would be entirely wrong for her to tell how much the interest rate should be.

Earlier, Truss had assured that she would re-evaluate the mandate of the BoE and ensure that the bank was focused on controlling the inflation levels and the money supply. An ally of hers has reportedly said that she may consider whether the existing arrangements suit the current circumstances.

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However, on BBC’s Sunday programme, Truss claimed that she believes in giving complete independence to the BoE so that it can function properly without any restrictions from the government. She said that the BoE must be allowed to fulfil their job autonomously.

Truss said that politicians stopped making decisions about the interest rates about three decades ago, and she will do the same and not interfere. She said it wouldn’t be unfair to countermand the bank and decide the rates. Although, she is planning to explore systems across the globe while evaluating whether the bank’s mandate is acceptable.

As the economic climate keeps changing with the interest rates, investors can keep an eye on the leading UK banks that interest rates may impact.

Standard Chartered plc (LON: STAN)

The market cap of Standard Chartered plc stands at £17,716.42m as of 5 September. STAN shares were trading at GBX 594.80, plunging by 1.29%, at 11:18 AM (GMT+1) on Monday. Over the last year, the FTSE 100 bank has given its investors a decent return of 30.63%, while its return on YTD (year-to-date) basis stands at 32.60% as of 5 September. Its EPS (earning per share) stands in the positive zone at 0.61, and its current dividend yield offering stands at 1.9% yearly. Standard Chartered has a P/E ratio of 10.35 at present. 

HSBC Holdings Plc (LON: HSBA)

The market cap of HSBC Holdings plc stands at £106,809.04m as of 5 September. HSBA shares were trading at GBX 530.80, plunging by 0.77%, at 11:25 AM (GMT+1) on Monday. Over the last year, the FTSE 100 bank has given its investors a decent return of 38.04%. Its YTD returns, too, were decent at 18.29% as of 5 September. Its EPS stands in the positive zone, at 0.62, and its current dividend yield offering stands at 4.5% yearly. HSBC has a P/E ratio of 9.11 at present. 

Lloyds Banking Group Plc (LON: LLOY)

The market cap of Lloyds Banking Group plc stands at £29,795.13m as of 5 September. LLOY shares were trading at GBX 43.01, plunging by 1.61%, at 11:27 AM (GMT+1) on Monday. The FTSE 100 bank’s returns are negative as of 5 September on both a one-year and YTD basis, standing at -0.92% and -10.02%, respectively. However, its EPS stands in the positive zone, at 0.08, and its current dividend yield offering stands at 4.9% yearly.

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