The report examines the 2011 half year results of the following banks: Barclays, HSBC, Lloyds Banking Group, RBS and Standard Chartered. We also include some analysis of the results of Clydesdale Bank, Nationwide Building Society and Santander.
The ever-changing political, regulatory, consumer and economic climate is also discussed, in addition to insights into what can be expected over the coming period.
- Combined interim profits for first six months of 2011 halved compared with H1 2010.
- Payment Protection Insurance (PPI), sovereign debt losses and continued lacklustre income growth key factors in profits fall.
- Trading volumes have slumped, the rate environment has flat-lined, banks’ convergence on the same strategic areas – equities, emerging markets, e-commerce platforms – has led to margin compression and underwriting activity is subdued.
- Cost control is likely to remain a key priority as banks struggle to grow top line revenues.
- Overall the outlook is very challenging.