Smaller UK banks could triple the money they put aside for coronavirus-related loan losses this year after lagging their larger rivals in preparing for the impact of the pandemic.

While large UK lenders including HSBC, Barclays, Lloyds Banking Group, Royal Bank of Scotland and Standard Chartered braced for the impact of the crisis with a hefty $9.2bn in loan loss provisions, mid-sized players should be prepared to take a bigger hit for the remainder of the year, according to Fitch, the ratings agency.