BUZZ-UK Banks: Exane BNP Paribas still cautious

** Exane BNP Paribas remains cautious on UK banks despite a recent tick up in rate expectations

** Broker says a bigger move in long rates and several moves in short rates are needed to have any appreciable impact on revenues

** Exane downgrades Barclays (LSE: BARC.L - news) to "neutral" from "outperform" and CYBG (Frankfurt: 42YA.F - news) to "underperform" from "neutral"

** Increasing concerns over the time to normalised dividends, potentially higher capital requirements, weaker investment banking revenues and UK credit quality leave broker cautious on the sector

** RBS (LSE: RBS.L - news) looks much better protected, per broker which, despite the overhang of the DoJ settlement, raises its rating on the stock to "outperform" from "neutral"

** HSBC Holdings (Frankfurt: 923893 - news) stays on "outperform" thanks to its attractive and sustainable yield - Exane

** Brokerage says RBS and HSBC offer investors an attractive complement of capital growth and income

** RBS top gainer while CYBG top loser on FT350 Banks Financial index