The UK banks’ first-half reporting season kicks off with Lloyds (LLOY) on 26 July.

The industry has been under fire for being much slower to pass on the benefit of higher rates to savers than it has been to pass on higher borrowing costs to mortgage-holders and other borrowers.

The Financial Conduct Authority called in the boss of Lloyds as well as several other banks and building societies to press them on this issue.

In theory, high interest rates should be good news for banks’ profitability but if, under political and regulatory pressure, they are having to pass on any benefit from higher rates almost immediately to savers then the boost could be heavily diluted.

The net interest margin, the difference between the income from lending and the cost of funding, is likely to be closely watched.

In the three-month period to 31 March the net interest margin for Lloyds was 3.22%, which was steady on the fourth quarter of 2022. For 2023 as a whole Lloyds is guiding for a net interest margin of 3.05%.

The market will also be alive to any sign of an increase in bad debts as households face the strain of significantly higher rates, particularly those coming off fixed-rate mortgage deals struck at much lower levels.

UK UPDATES OVER THE NEXT 7 DAYS

FULL-YEAR RESULTS

21 July: Thruvision

25 July: Games Workshop

26 July: Hargreaves Services

HALF-YEAR RESULTS

25 July: Bridgepoint, Croda, Hummingbird Resources, Reach, SThree, Unilever, Unite

26 July: Breedon, Centamin, Lloyds Banking, Primary Health Properties, Rathbones, Restore, RHI Magnesita

27 July: Anglo American, Barclays, Centrica, Drax, Franchise Brands, Forterra, Hammerson, Inchcape, Indivior, Informa, Jupiter Fund Management, Mobico, Rentokil, Schroders, SEGRO, Shell, St James’s Place

TRADING ANNOUNCEMENTS

25 July: Compass, Sage

27 July: Airtel Africa, BT, CMC Markets

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