Khalaf said: “Of the UK banks, Lloyds has cleaned up its act fastest since the financial crisis. The share price was badly hit by Brexit, but Lloyds has recovered much of its poise since, thanks to some decent numbers from the bank itself and from the wider economy.”
However, the “elephant in the room” is RBS, he added.
“It required twice as much financial support from the taxpayer as Lloyds,” Khalaf said.
“The RBS share price needs to double from its current level before the taxpayer breaks even on the bailout, and that isn’t happening anytime soon.
“As a result the government seems to be coming round to the realisation that it might have to sell shares at a loss, which will be an embarrassment to say the least.”
