Brexit, crisis ‘hangover’ keep UK bank shares undervalued, minister says

Shares of British banks are undervalued partly by lingering perceptions that they are still hampered by Brexit and a negative political climate toward the institutions, Britain's financial services minister said on Tuesday. Economic Secretary to the Treasury Bim Afolami told Reuters in an interview that those perceptions are unfounded and Prime Minister Rishi Sunak's government is working to change them by being responsive to the sector's needs. UK bank shares have struggled for much of the past year despite stability, lower risk and solid earnings, prompting Bank of England Governor Andrew Bailey to call their valuations a "puzzle" on Monday.