Net interest margin (NIM), the difference between interest charged on loans and paid on deposits, is a key profitability metric for banks which has come under pressure given a decline in global growth expectations and a low-interest-rate environment.

An undesirable outcome related to Brexit will likely add further pressure on interest rates, impacting future profitability. HSBC Group CFO Ewen Stevenson comments, “consensus is for a further rate cut at some point in the coming months … I think, is going to impact NIM negatively over time … I would think that NIM in the U.K. continues to gradually reduce over the coming quarters. But that can obviously change if suddenly, we had a different rate stance coming out of — whatever comes out of Brexit.”