Banks in the UK Industry Market Research Report Now Updated by IBISWorld

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The five years through 2012-13 have been some of the most volatile in the history of the banking industry. After a period of surging revenue and profit – driven by a credit boom, strong economy and unprecedented expansion in banking operations and products – the industry was brought to its knees by the financial crisis in late 2008. As global capital markets plunged and banks stopped lending to each other, massive asset write-downs wiped out bank equity, resulting in the collapse of Northern Rock and forcing the partial nationalisation of those left standing. Despite the weak conditions, IBISWorld estimates industry revenue will increase at an annualised 3.0% over the five years through 2012-13 to £132.2 billion, largely due to the 44.2% surge in 2009-10 due to government bailouts and assistance. The outlook for the industry over the next five years is more stable, although challenging conditions are expected to persist as a sluggish economic environment and rising regulation weigh on revenue and squeeze margins. Towards the end of the period, the industry is forecast to return to moderate growth, but will remain far short of the halcyon days of the mid-2000s. IBISWorld forecasts that industry revenue will increase marginally over the five years through 2017-18. For these reasons, industry research firm IBISWorld has updated its report on the Banks industry.

IBISWorld industry market research
Revenue will recover slowly as banks contend with difficult conditions

The five years through 2012-13 have been some of the most volatile in the history of the banking industry. According to IBISWorld industry analyst Iyman Uvais, “after a period of surging revenue and profit – driven by a credit boom, strong economy and unprecedented expansion in banking operations and products – the industry was brought to its knees by the financial crisis in late 2008”. As global capital markets plunged and banks stopped lending to each other, massive asset write-downs wiped out bank equity, resulting in the collapse of Northern Rock and forcing the partial nationalisation of those left standing. Despite the weak conditions, IBISWorld estimates industry revenue will increase at an annualised 3.0% over the five years through 2012-13 to £132.2 billion, largely due to the 44.2% surge in 2009-10 due to government bailouts and assistance.
Uvais adds, “the outlook for the industry over the next five years is more stable, although challenging conditions are expected to persist as a sluggish economic environment and rising regulation weigh on revenue and squeeze margins”. Towards the end of the period, the industry is forecast to return to moderate growth, but will remain far short of the halcyon days of the mid-2000s. IBISWorld forecasts that industry revenue will increase marginally over the five years through 2017-18.
The UK Banks industry has a medium level of market share concentration with the four largest UK banks holding a combined market share of about 63.7%. Further mergers between the remaining major players are unlikely to receive government approval due to concerns over competition and banks that are too big to fail. Therefore, industry concentration levels are forecast to decline marginally over the five years through 2017-18. Major companies include Barclays, The Royal Bank of Scotland Group, Llyods Banking Group and HSBC.
For more information on the Banks industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

This industry includes retail and commercial banking activities of deposit-taking institutions. Retail and commercial banking consists of accepting deposits from and making loans to individuals and businesses.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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Gavin Smith
IBISWorld
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