Banks remain on an even keel in second half of year

Over the course of this year UK financials have done well in absolute terms, although the two larges...

Over the course of this year UK financials have done well in absolute terms, although the two largest sub sectors, banks and life assurers, have performed in line with the market rather than outperforming. General financials, real estate and non life assurers, by contrast, have outperformed the market. Banks performed well at the beginning of the year but were fairly weak from about March, slightly earlier than the rest of the market. This was partly because of concerns over inflation and US interest rates. However, since July the sector has been helped by factors such as an improvement i...