The coronavirus pandemic pummeled British banks in the second quarter as many companies struggled to reopen and individuals reduced spending and deferred payments on loans. The industry is also grappling with Brexit and the increasing likelihood of negative interest rates.

Lloyds Banking Group shares fell as much as 9% on 30 July after the London-based lender said it swung to a £461m ($598m) loss in the second quarter because of the impact of the pandemic. Lloyds, Barclays and the UK unit of Banco Santander increased loan-loss charges in the three months ended June, compared with a year ago.