Select banks still good bets, says Threadneedle.

Investment Adviser, April, 2008

Byline: Oliver Shah

UK banking stocks with strong Asian cashflows will be able to weather the storm of write-downs, according to Threadneedle's Leigh Harrison.

Mr Harrison, head of UK equities at Threadneedle, said despite last week's GBP12bn rights issue from Royal Bank of Scotland and the unlikelihood the Bank of England's debt-for-bonds package will sufficiently counteract weakening confidence in the mortgage market, certain names still stood out as good bets.

He selected Lloyds TSB, Standard Chartered and HSBC as well-capitalised banks with low exposure to sub-prime lending and significant earnings from far eastern economies.

Mr Harrison said: "In the current increasingly challenging economic environment, we think we are now in...

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