Why we are avoiding large-cap UK banks

ON UK INCOME

clock

Rathbone's George Viney explains why he has made the controversial decision to hold no UK bank stocks.

Berkshire Hathaway’s Charlie Munger likes to tell investors the story of the old rustic who said, “tell me where I am going to die so I do not go there”. The message is simple: minimising risk is a strategy for long-term success. In this vein, large-cap UK banks continue to carry substantial risks that are best avoided. This is controversial because the sector’s decline so far this year, especially at Lloyds, has some fellow value investors excited they are on to a bargain. However, Lloyds and other banks are statistically cheap for good reason. In our view, they are low-quality compa...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

FOS chair refuses to explain former CEO's sudden departure
UK

FOS chair refuses to explain former CEO's sudden departure

TSC slams Manzoor's 'disrespectful' assertion

Isabel Baxter
clock 14 July 2025 • 3 min read
UK GDP falls by 0.1% in May 'increasing chances' of August rate cut
UK

UK GDP falls by 0.1% in May 'increasing chances' of August rate cut

Second monthly decline in a row

Sorin Dojan
clock 11 July 2025 • 3 min read
ClearBank co-founder among executives meeting Reeves to discuss incentives for UK floats
UK

ClearBank co-founder among executives meeting Reeves to discuss incentives for UK floats

Meeting with chancellor on Wednesday

Sorin Dojan
clock 10 July 2025 • 1 min read
Trustpilot