Banks in the UK - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

Losing interest: Rate hikes deter lending from businesses and make mortgage unaffordable for some people

Over the five years through 2023-24, UK banks' revenue is expected to grow at a compound annual rate of 0.3% to £123.2 billion, including anticipated growth of 9.9% in 2023-24. Low interest rates after the financial crisis limited the interest earned by banks from loans, hitting income. At the same time, a stricter regulatory environment, including increased capital requirements introduced under the Basel III banking reforms and ring-fencing regulations, constricted lending activity. To protect their profitability, banks have shut the doors of lots of branches and made substantial job cuts.

The Banks industry covers the retail and commercial banking activities of deposit-taking institutions. Retail and commercial banks accept deposits from and make loans to individuals and businesses. Building societies are not included in the industry.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.