Industry Analysis & Industry Trends
Over the past five years, increases in retail lending activity, prompted by an upturn in the housing market, have supported growth in the industry. The flow of credit available to banks also improved. Industry revenue is expected to increase at a compound annual rate of 4.5% over the five years through 2016-17. However, commercial lending activity remained weak, despite beginning to improve during the latter part of the period, and constrained industry growth. The tightening regulatory environment and very strict lending criteria also restricted lending activity and curbed industry expansion. In addition, the low interest rate environment curbed growth over the past five years.
In 2016-17, IBISWorld expects revenue to expand by 3.9% to £121 billion... purchase to read more
Industry Report - Industry Key Buyers Chapter
IBISWorld expects the four largest UK banks to have a combined market share of 47.6% in 2016-17, which indicates a medium level of concentration in the industry. Concentration increased significantly in January 2009 when Lloyds acquired HBOS, which had been hit hard by the financial crisis. The acquisition was largely funded by a capital injection from the government on the condition that the combined group would create and spin out a 600-branch retail banking business that would account for about one-fifth of the combined group's mortgage book. However, the recent sale of TSB by Lloyds is expected to cause concentration to fall. A similar bailout condition requiring RBS to divest 314 Royal Bank of Scotland and NatWest branches is also expected to reduce concentration. In .. purchase to read more