Overview of Banks in the United Kingdom
In the UK, there are many British and foreign-owned banks and financial institutions based in London; also, many small US banks have a relationship with one or more of the major banks in London. The banking system in the UK was started in the 17th Century, and since 1970 the UK government has implemented many banking sector reforms in order to safeguard and improve the banking sector. Although, banking and Finance sectors play an important role in the UK economy, during 1694 first bank was found in the UK as the Bank of England, which is the Central Bank of the United Kingdom and which issued banknotes and operate monetary policy and through it, central bank maintain financial stability in the country.
Due to the global financial crisis in 2008, UK financial regulatory underwent some changes, and Financial Service Authority is divided into two systems as Financial Conduct Authority and Prudential Regulation Authority, and responsibilities of UK banks are divided PRA and FCA. The number of branches open in the UK decreases from 3,370 in 1981 to 655 in January 2018. UK banking sectors are the largest in Europe and the 4th largest in the world. Moody’s outlook (last updated bin October 2018) on UK banking sectors remains stable as the UK’s strong capital and improving profitability. However, UK banking sectors remain challenging for the year 2019 due to uncertainty Brexit deals in the market.
Top 10 Banks in the United Kingdom
We will look at the top 10 banks of the United Kingdom below –
1. HSBC Holding PLC
HSBC was founded in 1865, and in London, it started in 1991, and it is one of the world’s largest financial services companies which serve more than 39 million customers through four global businesses, Retail Banking and Wealth Management, Commercial Banking, Global Banking, and Global private banking. Total assets with the bank as December 2018 was GBP 2007 Billion, and net income was GBP 10 Billion. As of 2018, the Bank has 235 thousand employees all around the world, and the main employment centers are in the United Kingdom and approximately 39 thousand employees working in the UK HSBC branch.
2. Llyods Banking Group
Llyods Bank was founded in June 1765, and since then, the bank has been serving the households, businesses, and communities of Britain. The Bank offers a comprehensive range of products and services, which includes current and savings accounts, mortgage, loans, and credit cards. The bank’s total income during the first six months of 2018 was GBP 8,513 Million compared to GBP 8,730 Million during the same period last year. Total employees work in UK Branch is approximately 75.1 thousand as of 2017, and it’s is the largest retail bank in the United Kingdom and also the third-largest insurance provider in the UK.
3. Royal Bank of Scotland Group
RBS is the third-largest bank in the UK, and it was established in 1727. The Bank employs around 12,000 people and serves 1.8m personal customers and 110,000 business customers. The Bank reported an operating profit of GBP 3,359 Million in the year 2018. Bank offers services like deposit, commercial banking services, assets and invoice finances, credit cards, financial planning services, etc. In 1946 bank launched its first mobile bank serving remote communities, and the bank has a total of 20 mobile branches, which serves around 650 communities in Scotland.
Barclays is a multinational bank with its headquarters in London. During 2018 bank reported profit before Tax was GBP 5,701 Million, which was up by 20%, and the group return on tangible equity was 8.5% which is close to the financial target of 2019. The Bank started its first branch in 1690, and it offers services like a current, saving, currency and bond account, debit, credit, and charge cards. In a bank, approximately 130,000 employees work, which serves more than 48 million customers in more than 50 countries. It is the second-largest bank in the United Kingdom in regard to total assets.
5. Standard Chartered
Bank had a history of over 160 years in the United Kingdom and opened its first branch in the United Kingdom in 1853, and it is one of the largest banks of the United Kingdom. Today bank operates through nearly 1026 branches worldwide and employs around 86,000 people around the world. London is a global financial centre and a key hub for Standard Chartered corporate and institutional business. The operating income of a bank was up by 5% during the year 2018 compared to 2017, and the underlying profit was up by 28% compared to 2017. Bank offer services like current and saving accounts, deposits, personal and other loans, mortgages and credit card, etc.
6. Nationwide Building Society
Nationwide Building Society was established in 1886, and it offers services like a current, saving and, individual savings account, residential family deposit, retirement borrowing, and other mortgage, overdrafts, personal loans, etc. Underlying the profit of a bank during Q3 2018 was GBP 691 Million. It is the UK’s largest saving Provider and second-largest mortgage provider, and it operates through more than 700 branches and employs around 18,000 people with around 15 million customers. Nationwide Building Society is like a mutual fund institution.
7. Santander UK
Santander UK is a large retail and commercial bank that has 15 Million active customers and 5.5 Million digital customers as of 2018. Bank reported a net profit of GBP 1,567 Million during 2018 as compared to GBP 1,814 Million during 2017. Bank offers services like retail banking, commercial banking, Global corporate banking through its network of 806 branches and 64 corporate business centers. Bank first branch was started in 1849, and then in the year, 2010 the bank brand is rebranded as Santander UK. In 2017 banks rolled out NEOCRM, which allows its customers to engage through any channel.
Schroders is a global asset and wealth manager which delivers a broad range of investments designed to meet the diverse needs of institutions and High Net worth individuals. It is a world-class Assets Manager operating from 29 countries across Europe, The Americas, Asia, the Middle East, and Africa. Today Schroders has 5,000 people across six continents who focus on GBP 421.4 billion of assets of clients to deliver a sustainable return. Schroders reported a net profit of GBP 504.7 Million during 2018 against GBP 594.4 Million during 2017.
9. The Co-operative bank
The co-operative bank provides services like internet banking, current accounts, mortgages, savings accounts, credit cards, and loans. In 2018 bank won the award for Moneyfacts 5 star rating for a current account. Bank operates through a network of over 100 branches and businesses banking sector, and it employs approximately 4,400 people. Bank also offers services in insurance which includes car insurance, home insurance, pet insurance, business insurance, young driver Insurance, and so on. Bank most of the funding comes from retail and commercial accounts. During Q3 2018 bank reported a pro of GBP 14.3 Million and a 14% reduction in its expenditure.
10. Tesco Bank
Tesco Bank was started in 1997 as Tesco personal finance, and later in 2008, it introduces a new name called as Tesco bank, and it is one of the largest retail banks. Bank has 5.6 Million customers account and nearly GBP 10.1 billion in customer deposits. Bank offers a wide range of products which includes Insurance, credit cards, and personal loan, saving and current accounts, mortgages, etc. Bank reported a profit of GBP 215.5 Million during February 2018, and in the first six months of 2018 bank reported a profit of GBP 338 Million and bank employ around 3,900 people.
This has been a guide to the Banks in the United Kingdom. Here we have discussed the 10 Top most banks in the United Kingdom with their financial structure. You may also look at the following articles: