0836 GMT - There is high value in more predictable growth, which is what U.K. banks can provide in the next three years, Deutsche Bank says in a research note. U.K. banks' forecasted revenue growth in the midterm is the highest in Europe, analysts Robert Noble and Alfredo Alonso write. Despite this, U.K. banks trade at a discount to peers, the analysts say. "The outlook for the next three years is very favorable and we do see acquisitions as both likely and potentially accretive," they say. They prefer the superior and more predictable capital generation--their preferred metric to consider value creation--of NatWest and Lloyds, and Paragon among the specialty lenders. Acquisitions in the space are likely and potentially accretive. Barclays has the most incentive to do a deal, they add. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

June 20, 2025 04:36 ET (08:36 GMT)

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