UK banks worth buying for discount to wider market, potential for dividends – UBS

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UK domestic banks trade at a 14% discount to the European banks sector, which itself trades at a 42% discount to the European market PLC (), () and (LON:WMUK) shares are all ‘buys’ for UBS as the European banking sector, particularly the UK’s, is seen as significantly undervalued compared to the rest of the market. UK domestic banks trade at a 14% discount to the European banks sector, which itself trades at a 42% discount to the European stock market, UBS pointed out. There seems to be no reason for this, the UBS analysts said: London-listed lenders have “just as much excess capital (15% of mkt cap), higher provision levels, lower troubled assets, a regulator we expect to sanction excess capital returns in July, and a central bank which should, we think, be considering tapering QE and hiking rates within the investing horizon”. With the economy outperforming expectations and seeing relative valuations as attractive, UBS said it was retaining its UK domestic b
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