Ratings agency S&P has updated its capital assessments for UK banks following the introduction of a range of additional payment protection insurance (PPI) provisions.
It said that the final financial impact of PPI provisioning on banks’ full-year 2019 earnings is likely to be more negative than it had previously assumed.
However, it said that it did not anticipate making any related ratings action when the banks announce their results for the period to 30 September.
It said: “Capital is an important component of our ratings analysis, but it is only one of several key elements. There are currently no examples of capitalisation being a credit negative for U.K. banks.”
