British banks behind global counterparts
The UK’s banks are now the fifth most profitable in the world, a drop from their lofty second place of just four years ago. The industry now lags behind those of China, Japan and France, as well as the world leader, the US.
Indeed, with profits in the sector languishing at 58 percent below their 2007 peak, the Banker magazine states that it will be an uphill struggle for the industry to regain its previous position.
“The poor state of much of the British banking sector three years after the crisis is a worry, and there are serious doubts over whether the sector will ever recover,” says Brian Caplan, editor of the Banker.
Individually, the highest placed of the banks operating in the UK was HSBC, which rose to third place on the back of its significant presence in Asia. Meanwhile, Royal Bank of Scotland, Barclays and Lloyds Banking Group all slid down the ratings, and are now placed 10th, 12th and 18th respectively.
