Kirrage: Time to return to UK banks

Now is the time for income-seeking investors to look at UK banks again, ahead of their return to the dividend register, said Schroders' Nick Kirrage.

The UK’s leading banks have not paid a dividend to shareholders since the financial crisis rocked the sector, but last week Royal Bank of Scotland’s CEO Stephen Hester said he expects the bank will pay a dividend again post-2013. Kirrage (pictured), co-manager of the £1bn Schroder Income fund, said domestic banks are the cheapest and most unloved area of the market, making them an ideal target for deep value investors. He holds 9% of the fund across Barclays, Lloyds and RBS to reflect this view. “The big elephant in the room is that the UK domestic banks, such as Lloyds and RBS, ha...