Industry Analysis & Industry Trends
The past five years have been some of the most volatile in the history of the banking industry. 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.
Banks have endured a torrid time, with revenue declining in 2008-09 before increasing strongly in 2009-10 thanks to government bailouts and assistance... purchase to read more
Industry Report - Industry Investment Chapter
Although significant capital investment is required for technology infrastructure and branch and ATM networks, spending on property and equipment is dwarfed to some extent by labour costs. This is reflected by a capital-to-labour ratio of 1:7.75, which indicates that an estimated £7.75 is spent on labour for every £1.00 of capital spending. Over the past decade, there has been a shift in banks' capital spending away from branches as banks have closed them and opted to lease rather than own property. There has also been a development towards more direct distribution channels using enhanced technology infrastructure... purchase to read more