Corbyn government as bad for banks as hard Brexit: Citi

Bloomberg

Jeremy Corbyn being elected UK prime minister would be just as damaging to British banks’ profits as the country crashing out of the European Union without a withdr-
awal agreement, according to Citigroup Inc.
While London-listed bank stocks have recovered from last year’s lows as the risk of a “no-deal Brexit” gradually subsides, a snap election is becoming more likely as lawmakers in Westminster remain unable to agree on a future relationship with the EU. Citigroup’s review of Labour Party pledges doesn’t bode well for the financial sector. “The impact on UK domestic bank EPS could potentially be similar in magnitude to a no-deal Brexit outcome,” analysts said.