Over the five years through 2025-26, UK banks' revenue is expected to climb at a compound annual rate of 4.8% to £136 billion, including an anticipated hike of 3.6% in 2025-26. After the financial crisis in 2007-08, low interest rates limited banks' interest in 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 like Lloyds have shut the doors of many branches and made substantial job cuts. Following the COVID-19 outbreak, the Bank of England adopted an aggressive tightening of monetary policy, hiking interest rates to rein in spiralling inflation. The higher base rate environment lifted borrowing costs, driving interest income for banks, which reported skyrocketing profit in 2023-24. Although profit grew markedly, pressure to pass on higher rates to savers and fierce competition weighed on revenue growth at the tail end of the year. However, the prospect of rate cuts in 2024-25 saw many banks lower their savings rates, aiding revenue growth. In 2025-26, although further interest rate cuts are on the horizon, revenue is set to grow, due to lower borrowing costs driving activity in the housing market. Banks have also reduced their exposure to interest rate cuts through structural hedges, which lock in rates when they fluctuate. The FCA’s investigation into motor commissions has been a cause for concern over recent years, with banks like Lloyds and Santander ramping up provisions over 2024-25 in preparation for large payouts, if the Supreme Court deems banks were carrying out illegal activities. Over the five years through 2030-31, industry revenue is forecast to swell at a compound annual rate of 4% to reach £165.8 billion. Regulatory restrictions, tougher stress tests and stringent lending criteria will also hamper revenue growth. Competition is set to remain fierce – both internally from lenders that deliver their services exclusively via digital channels and externally from alternative finance providers, like peer-to-peer lending platforms. The possibility of legislation like the Edinburgh reforms will drive investment and lending activity in the coming years, if introduced. However, concerns surrounding the repercussions of less stringent capital requirements and the already fragile nature of the UK financial system pose doubt as to whether any significant changes will be made.

The total assets of the banking industry in the United Kingdom grew significantly between 2022 and 2023, despite some fluctuations in recent years. In 2023, the total assets held at banks amounted to roughly ***** trillion U.S. dollars, which was a slight decrease compared to the previous year. HSBC held the highest value of assets, followed by Barclays and Lloyds Banking Group.

The total assets of the banking industry as a share of gross domestic product (GDP) in the United Kingdom fluctuated notably between 2002 and 2023, averaging around *** percent. In 2023, assets held at banks amounted to ****** percent of the total GDP, a significant decrease compared to the previous year. The value of total assets in the banking sector also slightly declined in 2023, reaching ***** trillion U.S. dollars.

Employment in the financial services sector in the United Kingdom fell between 2001 and 2021. The total number of people employed in this sector amounted to approximately 1.1 million in 2021, a figure that is unchanged since 2009. This was a decrease compared to pre-global recession figures, when on the British market there were 1.2 million people employed in all subsectors of financial services. These figures have decreased as a result of the crisis and closure of bank branches across the country.

The closing of bank branches

The increasing usage of online banking has resulted in a large number of bank branch closures in the United Kingdom. Many banks have seen dramatic declines in their number of branches in the last few years. The branch closures have become a way for the banks of decreasing expenditure as profit margins become tighter.

Financial service sector

Financial services, which include banks, credit unions, credit-card companies, accountancy firms, insurance companies as well as financial service companies are an integral part of any economy. The banking sector assets as percentage of gross domestic product (GDP) was approximately 378 percent in 2019.

The UK retail banking market, valued at approximately £68.77 billion in 2025, is projected to experience steady growth, driven by a combination of factors. Technological advancements, particularly in online and mobile banking, are significantly shaping customer preferences and driving market expansion. The increasing adoption of digital banking platforms, offering convenience and accessibility, is a key driver. Furthermore, the growing demand for personalized financial services and wealth management solutions among both individuals and businesses fuels market growth. Competition among established players like HSBC Holdings, Barclays PLC, and Lloyds Banking Group, along with the emergence of fintech companies, is fostering innovation and efficiency. Regulatory changes impacting lending practices and financial security also influence market dynamics. However, economic uncertainties and fluctuating interest rates pose potential challenges. The market is segmented by banking type (traditional, online, personal, business, wealth management), end-user (individuals, small businesses, corporates, high-net-worth individuals), and distribution channel (branches, online platforms, mobile apps). The shift toward digital channels presents opportunities for banks to enhance customer experience and optimize operational costs. While precise regional breakdowns within the UK are not provided, it is reasonable to expect that London and other major urban centers contribute significantly to the market size. Growth across regions will likely mirror national trends, influenced by factors such as regional economic performance, digital infrastructure availability, and the distribution of different customer segments. The projected CAGR of 3.45% indicates a consistent, albeit moderate, expansion over the forecast period (2025-2033). This moderate growth reflects the mature nature of the UK retail banking market and the potential for saturation in some segments. Nevertheless, continuous innovation and adaptation to evolving customer needs are expected to sustain the market's growth trajectory. Recent developments include: August 2024: Lloyds Bank launched a USD 137 cash offer for students opening current accounts. To qualify, students must deposit at least USD 622 between August 1 and October 31, 2024. Student account holders will also receive a 20% discount on selected Student Union events and can earn 2% interest on balances up to USD 6,219.September 2023: HSBC pioneered a partnership with Nova Credit, making it the first UK bank to allow newcomers to access their credit history from abroad. This initiative aims to facilitate smoother financial integration for individuals relocating to the United Kingdom.. Key drivers for this market are: The Shift Toward Digital Banking, with Customers Increasingly Using Online and Mobile Banking Services. Potential restraints include: The Shift Toward Digital Banking, with Customers Increasingly Using Online and Mobile Banking Services. Notable trends are: Deposit Trends and Digital Transformation Driving Traditional Banking.

Dataset

This dataset was created by peter mushemi

Released under MIT

Contents

Capital ratios in the UK banking sector showed significant improvement between 2014 and 2025, despite periodic fluctuations. While the sharpest decline occurred in the first quarter of 2022, ratios recovered in subsequent quarters. By the first quarter of 2025, the total capital ratio reached **** percent, with the Tier 1 ratio at **** percent and the CET1 ratio at **** percent.

Banks from United Kingdom - Consolidated total assets (financial and non-financial) in All currencies with residents of All countries (total) (immediate counterparty basis), all sectors (amounts outstanding / stocks, all instruments, total (all maturities) )

The United Kingdom: Bank concentration: percent of bank assets held by top three banks: The latest value from 2021 is 42.91 percent, a decline from 45.28 percent in 2020. In comparison, the world average is 67.43 percent, based on data from 135 countries. Historically, the average for the United Kingdom from 2000 to 2021 is 50.84 percent. The minimum value, 33.84 percent, was reached in 2003 while the maximum of 68.17 percent was recorded in 2004.

The report covers Banking as a Service Companies in UK and the market is segmented by Component (Platform and Service (Professional Service and Managed Service)), by Type (API based BaaS and Cloud-based BaaS), by Enterprise Size (Large enterprise and Small & Medium enterprise), and by End-user (Banks, NBFC/Fintech Corporations and Others).

Discover the latest insights on the booming UK retail banking market, projected to reach £90.97 billion by 2033. Analyze market trends, key players like HSBC & Barclays, and the impact of digital banking on this dynamic sector. Get the data-driven analysis you need for strategic decision-making. Recent developments include: August 2024: Lloyds Bank launched a USD 137 cash offer for students opening current accounts. To qualify, students must deposit at least USD 622 between August 1 and October 31, 2024. Student account holders will also receive a 20% discount on selected Student Union events and can earn 2% interest on balances up to USD 6,219.September 2023: HSBC pioneered a partnership with Nova Credit, making it the first UK bank to allow newcomers to access their credit history from abroad. This initiative aims to facilitate smoother financial integration for individuals relocating to the United Kingdom.. Key drivers for this market are: The Shift Toward Digital Banking, with Customers Increasingly Using Online and Mobile Banking Services. Potential restraints include: The Shift Toward Digital Banking, with Customers Increasingly Using Online and Mobile Banking Services. Notable trends are: Deposit Trends and Digital Transformation Driving Traditional Banking.

Comparing the segments of the banking market in the United Kingdom in 2024 with regard to net interest income, banking ranked first with around ************** U.S. dollars. The segment traditional banks followed in second place with approximately ************** U.S. dollars, while digital banks ranked third with about ************** U.S. dollars.

Actual value and historical data chart for United Kingdom Domestic Credit Provided By Banking Sector Percent Of GDP

Bank concentration (%) in United Kingdom was reported at 42.91 % in 2021, according to the World Bank collection of development indicators, compiled from officially recognized sources. United Kingdom - Bank concentration - actual values, historical data, forecasts and projections were sourced from the World Bank on November of 2025.

United Kingdom UK: Banking Institutions: Foreign Assets data was reported at 3,692,394.000 GBP mn in Sep 2018. This records a decrease from the previous number of 3,715,082.000 GBP mn for Jun 2018. United Kingdom UK: Banking Institutions: Foreign Assets data is updated quarterly, averaging 547,933.000 GBP mn from Mar 1963 (Median) to Sep 2018, with 223 observations. The data reached an all-time high of 3,905,217.000 GBP mn in Dec 2008 and a record low of 1,693.000 GBP mn in Mar 1963. United Kingdom UK: Banking Institutions: Foreign Assets data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s United Kingdom – Table UK.IMF.IFS: Financial System: Deposit Money Banks: Quarterly.

The rise of digital disruptors, challenger banks, and sustainability-focused financial institutions has reshaped the banking landscape, drawing billions in investment. To compete with established players, these newcomers have had to balance rapid customer acquisition with long-term retention. While digital banks once displayed wide swings in retention rates - some enjoying strong loyalty while others faced steep churn - recent trends suggest that retention has begun to stabilize. In the first quarter of 2025, for example, Monzo reported a positive retention ratio, while Starling Bank experienced a modest decline. Biggest winners In the first quarter of 2025, Nationwide and Monzo emerged as the leaders in customer retention, achieving an impressive ratio of *** and**** new customers for every one lost, respectively. Danske Bank, HSBC, The Co-operative Bank, and Triodos Bank also achieved good results, with *** customers switching to their services for every departing customer. In stark contrast, AIB Group faced significant challenges, with a concerning ratio of **** customers leaving for each new customer acquired. Customer growth of digital banks Digital-only banks have achieved remarkable growth in the European financial sector, with London-based Revolut leading the charge. In November 2024, Revolut reported a significant milestone of over ** million global customers, building on its strong momentum from 2024 when monthly app downloads surpassed *** million.

The recent high-profile collapses of Silicon Valley Bank and Credit Suisse bring the health of the EU and UK banking sectors into question. Find out how strong they're looking.

Graph and download economic data for External Loans and Deposits of Reporting Banks in Relation to the Banking Sector for United Kingdom (DISCONTINUED) (DDOI10GBA156NWDB) from 1995 to 2009 about United Kingdom, deposits, domestic, banks, and depository institutions.

United Kingdom UK: Domestic Credit: to Private Sector: % of GDP data was reported at 136.203 % in 2017. This records an increase from the previous number of 134.256 % for 2016. United Kingdom UK: Domestic Credit: to Private Sector: % of GDP data is updated yearly, averaging 94.784 % from Dec 1960 (Median) to 2017, with 58 observations. The data reached an all-time high of 194.862 % in 2009 and a record low of 17.556 % in 1960. United Kingdom UK: Domestic Credit: to Private Sector: % of GDP data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank.WDI: Bank Loans. Domestic credit to private sector refers to financial resources provided to the private sector by financial corporations, such as through loans, purchases of nonequity securities, and trade credits and other accounts receivable, that establish a claim for repayment. For some countries these claims include credit to public enterprises. The financial corporations include monetary authorities and deposit money banks, as well as other financial corporations where data are available (including corporations that do not accept transferable deposits but do incur such liabilities as time and savings deposits). Examples of other financial corporations are finance and leasing companies, money lenders, insurance corporations, pension funds, and foreign exchange companies.; ; International Monetary Fund, International Financial Statistics and data files, and World Bank and OECD GDP estimates.; Weighted average;