Barclays PLC (BCS)

[mlkrborn]

UK Banks Unattractive; RBS Least Liked -JPMorgan
Last update: 9/6/2011 5:18:09 AM
0918 GMT [Dow Jones] U.K. banks remain unattractive on a risk reward basis due to regulatory uncertainties, says JPMorgan Cazenove. Highlights in particular proposals on ring-fencing by the U.K.'s Independent Commission on Banking. Sees Royal Bank of Scotland (RBS.LN) as least attractive on a relative risk/reward basis. Continues to see RBS's non-core business as a drag on profitability and does not see the group earning more than the cost of capital before 2014 at earliest. Barclays is JPMorgan's preferred U.K. domestic bank. But although it's cheap, says it is hampered by the ICB proposals. Has Barclays at neutral, RBS and Lloyds Banking Group (LLOY.LN) at underweight, HSBC (HSBA.LN) and Standard Chartered (STAN.LN) at overweight.([e-mail])