UK banks brace for first-quarter reports after Trump tariff turmoil

Asia-focused banks, such as HSBC, are likely to be more affected by tariffs than domestic-focused banks such as Lloyds and NatWest. Photograph: Sebastian Ng/SOPA Images/REX/Shutterstock

UK banks’ earnings reports will be studied this week for signs of turmoil linked to Donald Trump’s tariff drama, with uncertainty over global growth likely to weigh on lenders with heavy exposure to China, including HSBC.

First-quarter profits only reflect the January-to-March period that preceded the US president’s “liberation day” tariff announcements on 2 April. But investors will be concerned about any hints of caution around earnings forecasts, as well as an uptick in money put aside for defaults by tariff-hit borrowers.