JP Morgan stays at overweight on Lloyds and Barclays

The FCA´s move on Friday to draw a line under the Payment Protection Insurance scandal is positive overall for the industry, with Lloyds likely to be the most favourably impacted, followed by Barclays, according to JP Morgan.

Furthermore, analysts Raul Sinha and Vivek Gautam highlight the market regulator´s indications that the rules and guidance arising from the Supreme Court´s decision on the Plevin case will only apply in cases where the payments within the credit agreement are on or after 6 April.

That means the impact of the decision, in the case of Lloyds, for example, will be small – approximately 1.2bn pounds - in the context of the issue (13bn pounds).

Sinha and Gautam maintained their overweight stance in the wake of the announcement.