Banks in the UK - Market Research Report (2014-2029)
London, United Kingdom
Last Updated: July 2024
SIC K64.191Revenue
£132.5bn
Past 5-Year Growth
Profit
£XX.Xbn
Employees
295k
Businesses
342
Wages
£XX.Xbn
Banks in the UK industry analysis
Over the five years through 2024-25, UK banks' revenue is expected to climb at a compound annual rate of 2.3% to £132.5 billion, including anticipated hike of 6% in 2023-24. Low interest rates after the financial crisis limited the interest earned by banks from loans, hitting income. At the same time, a stricter regulatory environment, including increased capital requirements introduced under the Basel III banking reforms and ring-fencing regulations, constricted lending activity. To protect their profitability, banks have shut the doors of lots of branches and made substantial job cuts.
Trends and Insights
- Rising interest rates push up revenue. In response to soaring inflation, the Bank of England has adopted aggressive interest rate hikes, boosting interest income for banks.
- Home loans were on the up. The housing market came to a near standstill when COVID-19 hit, but it rebounded when the stamp duty holiday was brought in. Now, soaring interest rates and cost-of-living pressures are shaking the market.
- London’s a global financial hub. It’s one of the world's major financial centres and other financial intermediaries give banks plenty of demand. That’s why it’s home to more banks than any other UK region.
- Customer satisfaction is key. It isn’t too difficult for someone to switch their bank account across to another provider – in fact, many banks offer incentives for switching. If a customer is unhappy with their bank’s services, they might jump ship.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 2.3 % over the past five years, to reach an estimated £132.5bn in 2024.
Trends and Insights
The stellar performance of banks in 2023-24 will begin to slow in 2024-25
- In the face of rampant inflation, the Bank of England adopted aggressive interest rate rises, boosting interest income from borrowers and ratcheting up revenue growth in 2022-23.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Lending activity set to pick up in the short term
- Lending activity will pick up significantly in 2025-26 as falling inflation boosts household spending power and pressure from high interest rates begins to ease. According to EY, mortgage lending is estimated to strengthen by 3.2% in 2025 as interest rates drop and the economic outlook improves.
Biggest companies in the Banks in the UK
| Company | Market Share (%)
2025 | Revenue (£m)
2025 |
|---|---|---|
Lloyds Banking Group plc | 19,200.0 | |
NatWest Group plc | 15,200.0 | |
HSBC UK Bank plc | 10,900.0 |
To view the market share and analysis for all 10 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Business loans, Home loans and Personal loans. Business loans is the largest segment of the Banks in the UK.
Trends and Insights
Elevated mortgage rates incite a slowdown in demand for home loans
- The home loans segment covers loans made to people for buying residential property.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Building Societies in the UK
- Financial Leasing in the UK
Complementors
- Investment Trusts in the UK
- Security & Commodity Contracts Brokerage in the UK
International industries
- Global Commercial Banks
- Commercial Banking in the US
- Savings Banks & Thrifts in the US
- Private Banking Services in the US
- Commercial Banking in Canada
Table of Contents
About this industry
Industry definition
The Banks industry covers the retail and commercial banking activities of deposit-taking institutions. Retail and commercial banks accept deposits from and make loans to individuals and businesses. Building societies are not included in the industry.
What's included in this industry?
Business loansHome loansPersonal loansDepository servicesCompanies
Lloyds Banking Group plcNatWest Group plcHSBC UK Bank plcPurchase this report to view all 10 major companies in this industry.
Related Terms
WHOLESALE FUNDINGRING-FENCINGCHALLENGER BANKSIndustry Code
SIC 64.19/1 - Banks in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Rising interest rates push up revenue. In response to soaring inflation, the Bank of England has adopted aggressive interest rate hikes, boosting interest income for banks.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Home loans were on the up. The housing market came to a near standstill when COVID-19 hit, but it rebounded when the stamp duty holiday was brought in. Now, soaring interest ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
London’s a global financial hub. It’s one of the world's major financial centres and other financial intermediaries give banks plenty of demand. That’s why it’s home to more ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Customer satisfaction is key. It isn’t too difficult for someone to switch their bank account across to another provider – in fact, many banks offer incentives for switching....
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Major bank Lloyds has restructured to boost its finances. It’s closed hundreds of branches and slashed thousands of jobs, as well as upping its focus on the UK market, which ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Lloyds Banking Group plc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of NatWest Group plc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of HSBC UK Bank plc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 7 additional companies
Detailed analysis
- Description and key data for Lloyds Banking Group plc, and factors influencing its performance in the industry
- Description and key data for NatWest Group plc, and factors influencing its performance in the industry
- Description and key data for HSBC UK Bank plc, and factors influencing its performance in the industry
- Description, key data and performance trends for 7 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Financial Conduct Authority keeps a close eye on the industry. It’s responsible for protecting consumers by making sure the UK financial sector remains fair and competiti...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Interest rate movements make profit highly volatile. Low rates held profit back for decades; they were cut further after COVID-19 hit, pushing profit down in 2020-21. After r...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2022)
- Coverage Ratios (2018-2022)
- Leverage Ratios (2018-2022)
- Operating Ratios (2018-2022)
- Assets (2018-2022)
- Liabilities (2018-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Banks in the UK industry in United Kingdom in 2024?
The market size of the Banks in the UK industry in United Kingdom is £132.5bn in 2024.
How many businesses are there in the Banks in the UK industry in 2024?
There are 342 businesses in the Banks in the UK industry in United Kingdom, which has grown at a CAGR of 1.5 % between 2019 and 2024.
Has the Banks in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Banks in the UK industry in United Kingdom has been growing at a CAGR of 2.3 % between 2019 and 2024.
What is the forecast growth of the Banks in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Banks in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Banks in the UK market in United Kingdom?
The biggest companies operating in the Banks market in United Kingdom are Lloyds Banking Group plc, NatWest Group plc and HSBC UK Bank plc
What does the Banks in the UK in United Kingdom include?
Business loans and Home loans are part of the Banks in the UK industry.
Which companies have the highest market share in the Banks in the UK in United Kingdom?
The company holding the most market share in United Kingdom is Lloyds Banking Group plc.
How competitive is the Banks in the UK industry in United Kingdom?
The level of competition is high and increasing in the Banks in the UK industry in United Kingdom.
