Starling hikes loan loss provisions on ‘pessimistic’ UK outlook

LONDON, June 12 (Reuters) – Starling Bank is “pessimistic” about the outlook for the UK economy, it said on Wednesday, setting aside more cash for potential loan losses even as the digital bank reported a 55% jump in annual pretax profit, driven by higher interest rates.

In the midst of an election campaign in which Prime Minister Rishi Sunak, trailing badly in the polls, is talking up prospects for Britain’s economy, Starling said it was increasing its so-called impairment provisions to around 47 million pounds ($60 million) from 34.5 million pounds the year before.