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 Locations Chapter
The geographic spread of revenue closely follows that of population and economic activity. Because nearly all consumers and businesses use banking services, the correlation with population and economic activity distribution is strong. It is not perfect, however, due to differing income levels and types of businesses across the regions.
For instance, the average income is relatively high in London and this often translates into greater revenue for banks because people with higher incomes can take out larger loans and therefore pay more interest. Higher property prices also contribute, with larger loans required to purchase a house meaning more interest is paid... purchase to read more