Which are the biggest banks UK?

Which are the biggest banks UK? The short answer is that there are 3 main banks in the UK, HSBC, Barclays, and Lloyds Banking Group. All three of these banks have a market capitalization above 20 billion market cap and are among the top 10 banks in Europe.

The largest of these 3 banks is HSBC with a market cap of $91bn, Lloyds Bank with $26bn and lastly Barclays with a market cap of $21bn.

Other well-known banks in the UK are the NatWest Group and Standard Chartered, though these two do not rank among the top players in Europe.

Established Banks

Established banks in the UK are your typical on-the-street brands such as Natwest, Barclays, and the such. Though over the past few years we have seen a decline in physical banks (branches).

In fact, it’s estimated that over 200 bank branches will close in 2022 across England, Wales, Scotland, and Ireland. You can find out about more branch closes via Link which assesses communities’ cash access needs following branch closures. www.link.co.uk/initiatives/bank-branch-closures/

Established Banks

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HSBC

HSBC was found in 1865 and now has headquarters in London, Untied Kingdom.

HSBC approximately has 4,000 branches and offices over 65 countries across Europe, the Americas, Africa, the Middle East and Asia-Pacific. In the UK they have roughly 594 branches throughout England, Wales and a small presence in Scotland and Northern Ireland.

At the time of writing HSBC has public stock listing on the LSE and with the ticker symbol HSBA.L has a market cap of $93.3bn.

Lloyds

Lloyds Banking Group was found in 1695 and now has headquarters in London, Untied Kingdom.

Lloyds approximately has over 1,000 branches throughout England, Wales and a small presence in Scotland and Northern Ireland.

The Lloyds Banking Group offers its products and services under the Lloyds bank, Halifax, Bank of Scotland, and Scottish Widows brands.

At the time of writing Lloyds Banking Group has public stock listing on the LSE and with the ticker symbol LLOY.L has a market cap of $28.6bn.

Barclays

Barlays PLC was found in 1690 and now has headquarters in London, Untied Kingdom.

Lloyds approximately has over 1,600 branches throughout England, Wales and a small presence in Scotland and Northern Ireland. But overall has over 4,750 branches in about 55 different countries.

At the time of writing Barclays PLC has public stock listing on the LSE and with the ticker symbol BARC.L has a market cap of $23.09bn.

NatWest Group

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NatWest Group was found in 1727 and now has headquarters in London, Untied Kingdom.

NatWest Group approximately has over 800 branches throughout England, Wales, Scotland and Northern Ireland.

The Natwest Group has subsidiary’s such as Natwest Holdings, Natwest Markets and RBS International.

At the time of writing NatWest Group has public stock listing on the LSE and with the ticker symbol NWG.L has a market cap of $22.6bn.

Standard Chartered

NatWest Group was found in 1853 and now has headquarters in London, Untied Kingdom.

Standard Chartered has approximately 776 branches throughout England, Wales, Scotland and Northern Ireland.

At the time of writing Standard Charted PLC has public stock listing on the LSE and with the ticker symbol STAN.L has a market cap of $16.6bn.

UK Banking Industry Weighting

Noting that HSBC, Lloyds, Barclays, NatWest and Standard Chartered are the 5 largest banks in the UK and are all publicly listed on the London Stock Exchange (LSE), we can see their industry weighting.

The largest by far is HSBC with a market cap of $93.3bn. According to GuruFocus this represents 45.62% of the banking industry weighting in the UK & Ireland. This is followed by Lloyds Banking with 13.42%, Barlays with 10.9%, NatWest with 10.4% and lastly Standard Chartered with 7.93%.

Industry weighting of UK banks

Challenger Banks

The established banks have been round for years, technically centuries as we can tell with Barclays PLC which can be dated back to 1690. Challenger banks are new to the scene fintech banks which are relatively small retail banks set up with the intentions of competing for business with large, long established national banks.

These challenger banks tend to focus on digital technology and online customer service which can offer a more diverse range of services and will often provide better interest rates than the more established traditional banks.

Challenger Banks

Monzo

Monzo is a online based bank which was found in 2015 and is based in London.

In February Monzo set the record for “quickest crowd-funding campaign in history” when it raised £1m in 96 seconds via Crowdcube.

Monzo is famous for their coral coloured bank cards.

As of 2021 Monzo had 5.8 million users.

In 2022 Monzo became winners of the Best British Bank away from the Smart Money people breaking Starling Banks 4 consecutive wins.

Click here to find out more about Monzo.

Revolut

Revolut is a fintech company which was found in 2015 and is based in London.

After a funding round in 2021 the company raised $800m bringing the companies valuation to $33bn, making it the most valuable UK tech start-up at the time.

Revolut is known for banking but also commission-free trading of stocks, crypto, commodities and other services.

As of 2021 Revolut had 15 million users.

Starling Bank

Starling Bank is a challenger bank found in 2014 and is based in London.

Since Starlings founding it has received £500m in funding and in 2016 the fintech bank received its banking licence from Prudential Regulation Authority and the FCA.

Starling focuses on current and business accounts.

As of 2022 Starling Bank has 2.7 million users.

Starling Bank has received the Best British Bank award for four consecutive years – 2018, 2019, 2020 and 2021.

Which are the biggest banks UK?

As known HSBC is the largest bank in the UK if taking into account their market cap on the London Stock Exchange of $93.3bn. With Lloyds, Barclays, NatWest and Standard Chartered following behind.

But there are up and coming fintech banks such as Monzo, Revolut and Starling to shake up the industry.

The problems with established banks being that as society move to online banking, almost with forced hands with high-street branch closures, they have up update their old and outdated systems.

This is where challenger banks (fintech) have a strong advantage, as they do not need to update old systems to cope with the new demand of online banking.

With challenger banks being mostly online they also don’t have the costly expenses of many employees.

For example HSBC. In 2021 HSBC employed 220,000 employees in the UK. Compare this to Monzo who employs 1,551. A vast difference in the number of employees and the cost will be vastly different.

If you are interested in Established and Challenger banks then it may interest you in ‘How do banks make money on saving accounts?‘, you can find the answer here.

How Do Banks Make Money On Savings Accounts?

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