Some of Europe's largest banks reported better-than-expected earnings on Thursday, despite difficult trading conditions in the region, as a big week for bank results nears its end.
Barclays' cash call, aimed at boosting its capital strength and meeting another hefty mis-selling charge, could bode ill for other U.K. banks such as Lloyds, analysts said.
U.K. bank Lloyds returned to profit in the first half of the year and indicated that it wouldn't be following in the footsteps of rival Barclays by issuing equity to meet capital requirements set by regulators.
Barclays said it would give an update on its capital plans alongside its first-half results on Tuesday, responding to weekend media reports the bank is considering selling new shares.
Analysts at Citi on Friday released a note to warn of their "neutral" rating on top-performing banking stock, offering alternative investing advice and telling investors to stay away from the "love-in".
Richard Ward, CEO of Lloyd's Of London, reveals the results of its survey which shows the greatest risks to global businesses include taxes, loss of orders and cybersecurity threats.
European shares posted gains to close higher on Monday, after an upbeat start to Wall Street, and better news from Greece and Portugal.
The banking watchdog said the aggregate capital shortfall at five major U.K. banks at the end of 2012 was 27.1 billion pounds, slightly higher than its 25 billion initial estimate in March this year.
George Osborne renewed his commitment to promote competition in retail banking on Wednesday, and inquired into the effects of mandatory branch sales by Lloyds and RBS.
Bankers who are reckless with customers' or taxpayers' money could face criminal charges and have bonuses and pensions clawed back.
Chris Wheeler, bank analyst at Mediobanca, expects the U.K. Chancellor to outline his plans for the privatization of Lloyds and RBS next week.
European shares closed slightly lower on Monday, dragged down by miners following warnings from analysts that Chinese growth would slow further after weaker than expected trade data.
Lloyds Banking Group Chairman Win Bischoff is to retire in the next year, handing the reins to a successor who must steer it through a potentially risky multi-billion pound government share sale.
The head of the Co-operative Bank stepped down on Friday, after agency Moody's downgraded its debt ratings and said it might have to ask for money to bolster its capital.
Investors cheered HSBC first quarter results on Tuesday, but analysts said the bank's profit-beat was misleading, and recommended RBS and Lloyds shares.
Cormac Leech, bank equity researcher at Liberum Capital, says HSBC's results are disappointing and advises switching to Lloyds and RBS.
Royal Bank of Scotland is expected to report its first quarterly profit in 18 months on Friday, the fruit of efforts to focus on bread and butter lending.
John Nelson, Lloyd's of London chairman, explains why the insurance sector as a whole is returning to profitability, despite several global catastrophes.
After five long years of deleveraging, the U.K. banking sector finally looks ready to make a comeback, with 2013 set to be a turnaround year.
European shares pared gains on Tuesday to close lower, after a raft of euro zone economic data softened earlier rises from positive earnings reports.