(Repeats story from Sunday)
* Banks set for resilient Q3 performance
* Executives warn Brexit impact is yet to come
* Pension top-ups, PPI provisions expected
By Andrew MacAskill and Lawrence White
LONDON, Oct 23 (Reuters) - Britain's major banks are set toreport stronger-than-expected results this week, confoundingexpectations that political and economic upheaval caused by thevote to quit the European Union would immediately squeezeprofits.
Since the vote in June, shares in Royal Bank of Scotland and Lloyds have fallen by about a quarter,partly reflecting their heavy exposure to any downturn in theBritish economy.
But senior executives from the major banks told Reutersconsumer spending had held up in the third quarter, while therehad only been a modest drop in demand for mortgages and businessloans, which are traditionally banks' big revenue earners.
The executives also said that economic conditions wouldprobably get much tougher next year when Britain is due toformally start the process to leave the EU no later than March,which will kick off two years of exit negotiations.
"This is a period of calm, maybe a false period of calm,before the storm," a senior executive of one of Britain'slargest banks said. "But don't be fooled by it."
Next week's results will be the first to capture fully thepost-referendum landscape for banks, which initially threatenedto be a testing one in terms of the economic climate and wherelower interest rates would make it harder for them to make moneyand continue to pay dividends.
But British consumer confidence, the labour market andoverall output have withstood the initial impact of Brexitbetter than most forecasts before the referendum.
Although growth is likely to slow in the third quarter,economists expect the economy will avoid the recession many ofthem originally predicted.
Lloyds Banking Group will report results on Wednesday,followed by Barclays on Thursday and Royal Bank ofScotland on Friday. Standard Chartered will report thefollowing week and HSBC the week after.
Analyst projections are for banks to report income littlechanged from the same period a year ago.
Barclays is expected to report third-quarter profit beforetax of 1.3 billion pounds ($1.59 billion) according to heanalysts' average estimate, down only slightly from 1.4 billiona year ago.
The banks' earnings will likely be dented by a series ofone-off hits, as they increase provisions to compensatecustomers mis-sold payment protection insurance (PPI) and top uppension pots hit by falling bond yields.
Lloyds is expected to contribute an additional 750 millionpounds in PPI provisions after the Financial Conduct Authoritypushed back a deadline for compensation claims by a year.
Barclays and Lloyds are also expected to top up theircompany pension funds to mitigate a further squeeze in bondyields, which pension funds rely on for income to pay retirees.
RBS is expected to report a loss of 231 million poundspartly because of ongoing restructuring and litigation charges,according to analysts.
Shares in HSBC and Standard Chartered are up in the year todate, reflecting the fact that both banks earn the bulk of theirrevenues in Asia and in U.S. dollars, which will boost therelative value of their earnings. ($1 = 0.8194 pounds)
(Reporting By Andrew MacAskill and Lawrence White, editing bySinead Cruise and Jane Merriman)