The research begins with analysis of the top five UK banks. The analysis includes review of various financial statements including profit and loss, balance sheet, cash flow statement and other filings, which have been filed publicly by the banks.
The data about the financial statements is available on the bank’s website in the investor section. The annual statement of previous year and half yearly statement for the current year have been used to review any major changes in the growth and operations of the company because of the Brexit impact.
In addition, for any major change, the management discloses in the notes about any potential impact that can arise due to future uncertain events. The research has taken into account all these factors while analysing the financial statements.
Various newspaper articles that talk about the impact of Brexit and analysis about the changing European sentiment have been taken into account during the research.
Questions for discussion:
How will the banks decide their location strategy?
Will the Brexit have any impact on passporting rights of the European banks?
Will the UK government be able to negotiate favourable terms with the European Union for maintaining the passporting rights?
What impact will Brexit have on the interest rates? Will they continue to be lower?
What impact Brexit had on trading revenues in the short term?
What is the expected impact of Brexit on trading in longer term?
Will the branches of banks in UK still be profitable? Is the profitability expected to reduce drastically?
What impact will the Brexit have on Sterling?