By Elena Vardon

U.K. banks are set to start reporting results for the second quarter of 2025 this week. Here's what you need to know:

LLOYDS BANKING GROUP: Lloyds reports on Thursday and the bank-provided consensus, which is based on 18 analyst models, forecasts 1.69 billion pounds ($2.29 billion) in pretax profit on 4.51 billion pounds in income.

NATWEST: Consensus based on 15 estimates expects to see a 1.65 billion-pound pretax profit for the three-month period, on 3.955 billion pounds in income, when the lender reports on Friday.

BARCLAYS: Next Tuesday, the bank is expected to post 2.24 billion pounds in pretax profit on income of 7.01 billion pounds for the three months ended June 30, according to a company-compiled consensus of 16 analysts' estimates.

HSBC: The bank reports next Wednesday and is expected to post $6.99 billion in pretax profit on income of $16.67 billion for the period, based on a consensus compiled by the group based on 17 estimates.

STANDARD CHARTERED: A consensus from May points to $1.62 billion in pretax profit and pencils in $5.04 billion in underlying income for the lender reporting last.

WHAT TO WATCH:

-- The evolution of net interest margin and loan growth following the Bank of England's latest interest rate cuts will be watched, though banks have hedging mechanisms in place to mitigate this and should continue to prove resilient. Shore Capital analysts pointed to a still-muted backdrop for loan growth and expect the second-quarter mortgage activity to be subdued after a strong first quarter. "Though we do expect banks to confirm that 2Q mortgage spreads were below 1Q's--partially driven by there being a lot less business to do in 2Q than in 1Q--we do not think this threatens the income outlook for the banks involved," UBS analysts noted.

-- U.K. banks should reiterate their guidance, with the exception of NatWest, which is likely to lift its revenue view for the year and is also expected to launch a buyback.

-- Investors will look for signs of any impact from a weaker dollar and macroeconomic volatility in the quarter. This is also set to have benefited wealth management operations as investors have been actively repositioning their portfolios to adapt to risks and reduce their dollar exposures. "We think non-[net interest income] may have more potential to surprise positively, as volatility remained high in the quarter, and Asia Wealth inflows remained strong, which bodes better for Barclays, HSBC and Standard Chartered," Bank of America said in a research note.

-- Attention will be paid to the extent that Asia-focused lenders HSBC and Standard Chartered are managing risk to revenues from the impact of U.S. tariffs on trade and transaction services as well as the hit to the top line from the sharp fall of Hong Kong's benchmark lending rate since May.

-- Uncertainty around the U.K.'s Supreme Court deliberations on potential refunds linked to the car loans probe still weigh on Lloyds, which has taken provisions for a potential redress, and on Barclays to a lesser extent. The ruling is expected by the end of the month and a redress scheme from the regulator in early September, so focus will be on any updated commentary. Citi analysts currently estimate an 18.7 billion-pound charge for the industry.

SCHEDULE:

-- Lloyds Banking Group: Thursday July 24

-- NatWest: Friday July 25

-- Barclays: Tuesday July 29

-- HSBC: Wednesday July 30

-- Standard Chartered: Thursday July 31

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

July 23, 2025 08:36 ET (12:36 GMT)

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