Industry Analysis & Industry Trends
The industry returned to growth during the past five years after being battered by the financial crisis. After a period of surging revenue and profit driven by a credit boom, a strong economy and an 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 banks' equity, resulting in the collapse of Northern Rock and forcing the partial nationalisation of those left standing. Industry revenue is expected to increase at a compound annual rate of 5% over the five years through 2015-16 to £116.7 billion. The improvement in the housing market propelled industry growth... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Banks industry is in the mature phase of its life cycle. One of the main indicators of this is the already high level of private-sector debt in the United Kingdom, which, relative to the size of the economy, is among the highest in the world. This limits the scope for additional borrowing by consumers or businesses. However, the stronger economic conditions and government initiatives are expected to propel growth over the coming period. Higher interest rates should also positively influence revenue.
The industry's contribution to the economy is expected to grow at a compound annual rate of 5.2% over the 10 years through 2020-21, while the economy is expected to grow at 2.1% over the same period... purchase to read more