Retail banks have seen a profits boost in third quarter thanks in part to the historic misconduct issues – such as the payment protection insurance mis-selling scandal.
Neil Tomlinson, head of UK banking at Deloitte, commented on the latest figures saying:“UK retail banks’ profits have been boosted in the third quarter by an easing off of PPI provisions. The outlook for the next quarter also looks positive as banks should benefit from their strong underlying credit quality and an expected imminent rise in the base rate.
“This should enable banks to continue on an upward trajectory, despite recent concerns from some regulators over the growth in unsecured consumer credit.
“Looking further out, banks will still have to continue navigating relatively slow economic growth and Brexit-related uncertainties. However, as of January next year, they will have the opportunity to embrace Open Banking to develop new product propositions and new sources of revenue. We predict that banks will look to partner with FinTechs to drive such growth in future.”