**** was the largest bank in the United Kingdom in 2024, boasting total assets of over ************** U.S. dollars. As of 2024, **** was also the largest bank in Europe, and it stood as one of the global banking industry's leading institutions. Barclays held the second highest value of assets in the UK, followed by Lloyds. Market capitalization of the banking sector in Europe and the UK A different measure, frequently employed to determine the size of a bank, is market capitalization, or the total dollar market value of a company's outstanding shares. Market capitalization is calculated from the current market price of one share and the number of shares outstanding for a company. In 2024, **** was the largest bank in terms of market capitalization trading on the London Stock Exchange and overall in Europe. What does HSBC do? HSBC is a British multinational bank and financial services institution headquartered in London, United Kingdom. The bank serves customers with commercial banking, global private banking, global banking and markets, and personal financial services. The largest geographical region of the bank, in terms of revenue generation, is Asia. At the end of 2024, the bank had roughly ******* employees around the world.

HSBC maintained its position as the largest bank in the United Kingdom by market capitalization from 2001 to 2024. On December 31, 2024, HSBC's market capitalization reached approximately 176.71 billion U.S. dollars, recovering to pre-pandemic levels and reinforcing its status as the largest European bank by market value. Bank market valuations during the pandemic The coronavirus pandemic significantly impacted global banking market capitalizations. In early 2020, the largest European banks experienced sharp declines in market value due to economic uncertainty. The worldwide banking market saw a substantial drop in market capitalization during 2020, with most major banks experiencing similar trends. However, the market began recovering throughout 2021, with banks gradually returning to pre-pandemic valuation levels. The banking industry in the UK The UK banking industry is led by five major chartered banks, increasingly challenged by digital banks like Starling and Monzo. Despite losing some customers domestically, HSBC remains significant - the largest bank in the United Kingdom and one of the world's largest financial institutions.

Banks employ various strategies to attract and retain their customer base, such as cheap overdrafts, in-credit interest and no withdrawal charges. While the number of new and active customers can be easily observed, customer satisfaction is trickier. Knowing how customers feel about the service received can help banks adjust to the dynamics of an increasingly competitive market. Customer satisfaction for leading banks in the UK According to the Which? customer satisfaction survey, as of November 2024, three digital banks, First Direct, Monzo Bank, and Starling Bank had the highest customer satisfaction score. According to the survey, 83 percent of these banks' customers were satisfied with the banks' services and products, and willing to recommend them to their friends. Investment in selected European countries Among the services that aim at making banking more customer-oriented and effortless is the current account switch service (CASS). CASS allows customers to change their bank account hassle-free, redirecting transactions and transferring payment arrangements. As of the second quarter of 2024, nine out of 20 banks observed increased their customer base following the CASS process. The highest gain-to-loss ratios were recorded by Danske Bank and Santander, gaining respectively 5.29 and 3.27 times more new customers than the ones lost to other banks.

Since 2014, ************* has maintained its position as the UK banking sector leader by annual revenue. In 2024, **** generated approximately ***** billion British pounds in revenue. Barclays PLC ranked second with ***** billion British pounds in revenue for the same year. The five largest UK banks showed varied performance in 2024, with HSBC, Barclays, and Standard Chartered all experiencing revenue growth, while Lloyds Banking Group and NatWest Group reported slight decreases in revenue.

Over the five years through 2024-25, UK banks' revenue is expected to climb at a compound annual rate of 1.7% to £128.6 billion, including an anticipated hike of 2% in 2024-25. 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 such as Lloyds have shut the doors of many branches and made substantial job cuts. Following the COVID-19 outbreak, the Bank of England adopted 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, who reported skyrocketing profits in 2023-24. Although profit grew markedly, pressure to pass on higher rates to savers and fierce competition weighed on net interest income at the tail end of the year, the difference between interest paid and interest received. UK banks are set to continue performing well in 2024-25 as the higher interest rate environment maintains healthy interest income, aiding revenue growth. However, net interest income is set to dip marginally due to higher deposit costs and narrow margins on mortgage loans. With further rate cuts priced into markets, savings rates will drop in 2024-25, stemming the drop in net interest income. Over the five years through 2029-30, industry revenue is forecast to swell at a compound annual rate of 3.3% to reach £151.1 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 United Kingdom's banking landscape in 2024 revealed a competitive field dominated by established institutions, with ******** leading the pack with ** million customers worldwide. **** followed closely with ** million customers, showcasing the enduring strength of traditional banks despite the rise of digital challengers. Interestingly, customer numbers don't necessarily correlate with satisfaction, as online banks like Starling Bank, First Direct, and Monzo Bank topped the charts for customer contentment. Market dominance and financial performance While ******** boasts the largest customer base, HSBC maintains its position as the UK's largest bank by market capitalization. As of December 31, 2024, HSBC's market value reached approximately ****** billion U.S. dollars, rebounding to pre-pandemic levels and solidifying its status as Europe's largest bank by market value. This financial strength is further reflected in HSBC's annual revenue, which towered at **** billion British pounds in 2024. Digital transformation and customer retention The banking sector's shift towards digital services has led to widespread branch closures among the UK's "big four" banks, with Barclays, Lloyds, and NatWest each shuttering over 1,000 locations between 2017 and 2024. This transition, while improving efficiency, has also resulted in significant job losses. Despite these changes, some traditional banks have managed to maintain strong customer loyalty. Nationwide, for instance, led UK banks in net current account gains in the third quarter of 2024, attracting over ****** new customers through the Current Account Switch Service. However, digital challengers like Revolut have made significant inroads, with the London-based neobank reporting over ** million global customers by November 2024, highlighting the growing appeal of digital-only banking solutions.

5-bank asset concentration in United Kingdom was reported at 59.85 in 2021, according to the World Bank collection of development indicators, compiled from officially recognized sources. United Kingdom - 5-bank asset concentration - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.

United Kingdom UK: Branches: per 100,000 Adults: Commercial Banks data was reported at 25.141 Number in 2013. This records an increase from the previous number of 22.088 Number for 2012. United Kingdom UK: Branches: per 100,000 Adults: Commercial Banks data is updated yearly, averaging 25.727 Number from Dec 2004 (Median) to 2013, with 10 observations. The data reached an all-time high of 29.026 Number in 2004 and a record low of 22.088 Number in 2012. United Kingdom UK: Branches: per 100,000 Adults: Commercial Banks 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: Banking Indicators. Commercial bank branches are retail locations of resident commercial banks and other resident banks that function as commercial banks that provide financial services to customers and are physically separated from the main office but not organized as legally separated subsidiaries.; ; International Monetary Fund, Financial Access Survey.; Median; Country-specific metadata can be found on the IMF’s FAS website at http://fas.imf.org.

In 2024, HSBC recorded the highest net profit among the five largest banks in the United Kingdom, reporting just under 20 billion British pounds. Barclays ranked second, with net profits of approximately 6.36 billion British pounds, while NatWest followed with around 4.8 billion British pounds in net profit.

The popularity of non-physical, digital-only banks has grown in recent years in the UK, and the trend has shown no signs of slowing down soon, as banking app downloads in the UK increased in 2024. According to a survey of British people that either already had an account with a digital-only bank or intended to do so in the next 5 years, the main reasons for having such an account were better interest rates offered by such banks, and the convenience of money transfer. Keeping it traditional In the same survey, respondents that had chosen to stay with their current traditional bank did so mainly due to a form of loyalty. Over ** percent of respondents indicated that their current bank's treatment was the main reason for not switching across to a digital-only alternative. In general, digital banks are seeing an increasing number of customers switching across to their services. Leading online banks The UK’s migration across to using online banking has been steadily growing since 2007. As of 2023, the online banking penetration rate in the UK was ** percent. The largest digital banks in the UK all managed to expand their customer base significantly in recent years, with Revolut leading the way.

In the fourth quarter of 2024, Nationwide led UK banks in net current account gains through the Current Account Switch Service (CASS), which is operated by the Payment Systems Regulator. The bank attracted over ****** new current account customers during this period. In contrast, Barclays experienced the highest net losses, with more than ****** customers switching their current accounts to other banks. How many customers switch current account in the UK? Throughout 2024, more than 100,000 people in the United Kingdom switched from their main current account provider every month. Nationwide, the bank with the highest ratio of bank customers gained, saw more than *** customers join the bank for every one that left in the last quarter of 2024. Customer growth of disruptor banks The introduction of mobile-based digital banks such as Revolut and N26 has seen customers flock to disruptors by the millions. Low fees, ease of use, and a user-friendly interface have made disruptor banks a cause of concern to incumbents in the future. It is not only customers that have been attracted to these disruptors. Venture capital backed funding has enabled several online banks to reach unicorn status.

All five of the largest banks in the United Kingdom performed well in terms of return on tangible equity (RoTE) in 2024, although RoTE declined at Lloyds and NatWest. NatWest reported a RoTE of **** percent, the highest in the observed period, followed by HSBC with a RoTE of **** percent.

Graph and download economic data for Immediate Rates: Less than 24 Hours: London Clearing Banks Rate for the United Kingdom (DISCONTINUED) (IRSTLC01GBQ156N) from Q3 1971 to Q2 2015 about United Kingdom, interest rate, banks, interest, depository institutions, and rate.

This statistic displays the findings of a survey that asked respondents which high street bank they have their main (most active) current account with. Of respondents, ** percent stated that their current account used most often is with Barclays bank. Santander, Halifax and Lloyds all come in second with ** percent each.

August 2024 marked a significant shift in the UK's monetary policy, as it saw the first reduction in the official bank base interest rate since August 2023. This change came after a period of consistent rate hikes that began in late 2021. In a bid to minimize the economic effects of the COVID-19 pandemic, the Bank of England cut the official bank base rate in March 2020 to a record low of *** percent. This historic low came just one week after the Bank of England cut rates from **** percent to **** percent in a bid to prevent mass job cuts in the United Kingdom. It remained at *** percent until December 2021 and was increased to one percent in May 2022 and to **** percent in October 2022. After that, the bank rate increased almost on a monthly basis, reaching **** percent in August 2023. It wasn't until August 2024 that the first rate decrease since the previous year occurred, signaling a potential shift in monetary policy. Why do central banks adjust interest rates? Central banks, including the Bank of England, adjust interest rates to manage economic stability and control inflation. Their strategies involve a delicate balance between two main approaches. When central banks raise interest rates, their goal is to cool down an overheated economy. Higher rates curb excessive spending and borrowing, which helps to prevent runaway inflation. This approach is typically used when the economy is growing too quickly or when inflation is rising above desired levels. Conversely, when central banks lower interest rates, they aim to encourage borrowing and investment. This strategy is employed to stimulate economic growth during periods of slowdown or recession. Lower rates make it cheaper for businesses and individuals to borrow money, which can lead to increased spending and investment. This dual approach allows central banks to maintain a balance between promoting growth and controlling inflation, ensuring long-term economic stability. Additionally, adjusting interest rates can influence currency values, impacting international trade and investment flows, further underscoring their critical role in a nation's economic health. Recent interest rate trends Between 2021 and 2024, most advanced and emerging economies experienced a period of regular interest rate hikes. This trend was driven by several factors, including persistent supply chain disruptions, high energy prices, and robust demand pressures. These elements combined to create significant inflationary trends, prompting central banks to raise rates in an effort to temper spending and borrowing. However, in 2024, a shift began to occur in global monetary policy. The European Central Bank (ECB) was among the first major central banks to reverse this trend by cutting interest rates. This move signaled a change in approach aimed at addressing growing economic slowdowns and supporting growth.

Abstract copyright UK Data Service and data collection copyright owner.

The main aim of the research was to collect and use previously unused archive data (currently available in the archive repositories of the main commercial banks) to examine policy and practice on the management of investment portfolios by English commercial banks in the decades prior to 1914.

The contribution to knowledge arises from the strengthening of our understanding of general asset management by the banks (e.g. their approach to risk; liquidity and capital adequacy) and of the role of financial institutions in the capital market during a period of significant economic and cultural development in both the UK banking sector and secondary capital markets.

Main Topics:

The archive data available at the main commercial banks has been used to create datasets. These datasets contain information relating to the investments and securities held by each of the banks for which archive material was available. The data is presented in the form of a series of spreadsheets. A typical spreadsheet details the securities held by a bank in a given year. Further information may be provided such as: the amount held, the price paid, the value, etc. The amount of information provided for a particular bank is dependent upon the amount of information in the surviving archival sources.

The benchmark interest rate in the United Kingdom was last recorded at 4.25 percent. This dataset provides - United Kingdom Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

United Kingdom Loan Market was valued at USD 267.23 Billion in 2024 and is expected to reach USD 521.67 Billion by 2030 with a CAGR of 8.26%.

Pages	82
Market Size	2024: USD 267.23 Billion
Forecast Market Size	2030: USD 521.67 Billion
CAGR	2025-2030: 8.26%
Fastest Growing Segment	Non-Banking Financial Companies
Largest Market	England
Key Players	1. Barclays Bank UK Plc 2. HSBC Group 3. Santander UK Plc 4. Kensington Mortgage Company Limited 5. BMW Group UK 6. Lloyds Bank Plc 7. Mitsubishi HC Capital UK Plc 8. Nationwide Building Society 9. Virgin Money UK Plc 10. Lendable Limited

As of June 2025, there were a total of 4,752 credit institutions operating in the European Union. Across Europe, approximately 1.8 million individuals were employed by credit institutions, with some bank employees looking after more than 200 customers each. The German banking sector In 2025, Germany had more than twice as many banks operating than any other European country, despite a steady downward trend for years. Germany has 3 main types of banks, which include commercial, savings (or Sparkassen) and cooperative banks. Despite the declining number of banks, the German bank sector's assets increased steadily during the last decade, amounting to over 10 trillion euros in 2024. What is the leading bank in Europe? In 2024, HSBC was the largest bank in Europe, in terms of market capitalization. The British headquartered bank also led the European banking sector in terms of assets and tier 1 capital. The UK giant also ranked first in terms of revenue. When it comes to digital banking, Revolut stands out as the leading player, with its customer base rising sharply in recent years, reaching over 52 million at the end of 2024.

This statistic displays the the findings of a survey that asked millennial respondents which high street bank they had their main (most active) current account with. Millennials are often defined as persons reaching young adulthood in the early 21st century. This survey referred to respondents aged between the age of 18 and 34 years as of June 2018. Barclays bank was the most popular bank for millennials with a total of 19 percent using the bank for their main current account.