0710 GMT - U.K. banking shares rise in morning trade Monday, recovering some of the losses logged on Friday when talk of possible tax increases on the sector as part of the U.K.'s October budget statement spooked investors. Shares in domestic lenders Barclays, NatWest and Lloyds Banking Group traded close to 1% higher. "An increase in the U.K. bank tax cannot be ruled out, but we expect other tax levers to be pursued beforehand," Citi analysts say, adding that there was nothing new in the Financial Times article or the report by U.K. think tank IPPR. Jefferies analysts say "a 5% hit to domestic banks [on Friday] on the back of yet another think tank highlighting potential reserve-remuneration-related benefits is not justified." (elena.vardon@wsj.com)

(END) Dow Jones Newswires

September 01, 2025 03:10 ET (07:10 GMT)

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