UK banks brace for first-quarter reports after Trump tariff turmoil

Lenders expected to split into two camps: those focused on domestic customers and those with large operations in the US, China and the EU

UK banks' earnings reports will be studied this week for signs of turmoil linked to Donald Trump's tariff drama, with uncertainty over global growth likely to weigh on lenders with heavy exposure to China, including HSBC.

First-quarter profits only reflect the January-to-March period that preceded the US president's liberation day" tariff announcements on 2 April. But investors will be concerned about any hints of caution around earnings forecasts, as well as an uptick in money put aside for defaults by tariff-hit borrowers.