High street banks in the UK experienced a significant decline, losing £100 billion in deposits over five years due to customer preference for online challengers and specialist lenders. The market share for traditional banks fell from 84% in 2019 to 80% in 2024, driven by public backlash over unpassed interest rates. KPMG reported a £3.7 billion decline in pre-tax profits, marking a downturn for the first time since the pandemic. The banking sector's average return on equity is anticipated to drop from 13% in 2023 to 8% by 2027, prompting a need for transformation to adapt to emerging challenges.
"Banks are facing a lower-growth, higher-cost environment that demands transformation at pace. While we can expect profitability to broadly remain sound this year, the entire sector needs to show how they are preparing for challenges ahead."
KPMG revealed that the UK banking sector recorded a £3.7 billion fall in pre-tax profits last year-its first significant downturn since the pandemic recovery began.
Collection
[
|
...
]