KPMG comments on UK banks’ Q3 results

Peter Rothwell, Head of Banking at KPMG in the UK.

Peter Rothwell, Head of Banking at KPMG in the UK.

Peter Rothwell, Head of Banking at KPMG in the UK, comments:

“The results paint a mixed picture for the banks. Despite steady third quarter profits, buoyed by the higher interest rate environment, some lenders are expecting margins to come under pressure moving forward. While there is evidence of higher interest rates and the cost-of-living crisis having an impact on some credit portfolios, so far there hasn’t been a significant deterioration in asset quality. However, the current environment is having some impact on strategy and capital allocation decisions, as banks adjust to the economic headwinds and ongoing regulatory change.

Against this challenging backdrop, it’s not surprising to see a growing emphasis on cost cutting. We expect to see banks continue to focus on the use of technology, including AI, to deliver efficiencies and enhanced customer experience while building resilience and driving down costs in areas such as regulatory compliance.

The market will be watching to see how the higher interest rate environment will impact the banks over the coming quarters, both in terms of net interest margin and signs of further deterioration in credit quality."



Notes to editors:

For further information please contact:

Helen Jackson and Petra Shuttlewood, media relations senior manager, financial services (job share)

E: HelenandPetre


Gerard Swinley, KPMG Corporate Communications




KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.72 billion in the year ended 30 September 2022.  

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 265,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients. 

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