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 Analysis Chapter
Over the five years through 2013-14, IBISWorld expects industry revenue to rise at a compound annual rate of 6.3% to £135.8 billion. This includes a 12.2% fall in 2008-09 after an even larger decline the previous year. However, this was followed by a 44.6% surge in 2009-10 after the UK government assisted the industry by providing bailouts and other guarantees. Industry revenue declined by 8.6% in 2010-11 and has stagnated since then as the industry has struggled with high debt levels, falling house prices, high unemployment, low or negative real disposable income growth and weak business capital expenditure. Industry growth was also constrained by banks tightening their lending criteria significantly in an attempt to reduce loan losses... purchase to read more