Uk bankng slayt1

Change in the UK

İn the change the world

FINANCAL STRUCTURE OF THE UK BANKING SYSTEM

• THE BALANCE SHEET STRUCTURE OF THE UK BANKING SYSTEM DIFFERS FROM THAT OF MANY OTHER EUROPEAN SYSTEMS

• SIGNIFICANT PRESENCE OF FOREIGN BANKS

• FOREIGN CURRENCY ORIENTED

IN FIGURE 2 IT SHOWS THAT FOREIGN CURRENCY BUSINESS IS AT LEAST AS IMPORTANT AS STERLING ACTIVITY IN THE BANKING SECTOR’S BALANCE SHEET

IN FIGURE 3 IT SHOWS THE IMPORTANCE OF FOREIGN CURRENCY DEPOSITS IN THE UK SYSTEM.

The largest banking and financial services organizations in the world with offices in 88 countries.

THE BANK SERVES OVER 95 MİLLİON CUSTOMERS WORDWİDE.

Big four bank in the world;

Rank BankCountr

y

Assets ($b)

Date

1 Deutsche BankGerman

y2,802.71 31/12/2011

2Mitsubishi UFJ

Financial GroupJapan 2,741.52 31/12/2011

3 HSBC Holdings UK 2,555.58 31/12/2011

4 BNP Paribas France 2,545.34 31/12/2011

CRUİCKSHANK REPORT WAS PUBLİSHED İN 2000.

The report; in competition protect to consumer especially individual and SMEs.

report was published in 2002.independent public body which conducts in-depth inquiries into mergers, markets and the regulation of the major regulated industries, ensuring healthy competition between companies in the UK for the benefit of companies, customers and the economy

RankBank

Total assets ($b)

Date

1 HSBC Holdings 2,454.69 31.12.2010

2 Barclays 2,325.72 31.12.2010

3 Royal Bank of Scotland Group 2,267.93 31.12.2010

4 Lloyds Banking Group 1,549.45 31.12.2010

5National Westminster Bank (NatWest) (1) 572.250 31.12.2010

6 Standard Chartered Group 516.542 31.12.2010

7 Santander UK (2) 472.842 31.12.2010

8 Standard Life 240.615 31.12.2010

9 Co-operative Financial (CFS) 108.306 31.12.2010

10 Investec 72.711 31.03.2010

11 Clydesdale and Yorkshire Bank (3) 69.476 30.09.2010

12 Northern Rock plc 29.039 31.12.2010

Banks increasinglyrely on non-interestincome as a source

of total income.

Financial year

ending

2004 2005 2006 2007 2008 2009

İnterest income

85.2 100.5 116.8 147.0 172.3 107.2

İnterest expense

50.8 62.9 76.8 104.4 117.6 56.7

Net in.income

34.4 37.7 40.0 42.5 54.7 50.5

Non-int.incom

e(net)

45.7 51.7 56.9 49.9 30.1 62.9

Gross income

80.1 89.4 96.9 92.4 84.8 113.4

Operating

expenses

50.9 54.6 56.2 49.9 92.8 64.9

Net income

29.2 34.8 40.6 42.5 -7.9 48.4

Provisions(net)

5.3 7.4 8.9 10.9 33.7 40.2

Profit before tax

24.0 27.4 31.7 31.7 -41.7 8.3

tax 6.6 7.9 9.2 7.2 -4.2 0.0

Profit after tax

17.3 19.5 22.5 24.5 -37.5 8.3

Staff cost(include above)

20.3 22.6 25.5 27.1 29.7 30.0

İncome –costs=profits

MBBG İNCOME STATEMENT

Relatively high margin,lower costand buoyant economic conditions

have resulted in an increase in loandemand;this has fed through into a

sustained increase in the profitabilityof UK banks from 1992 to 1999.

FRANCE Prior to the 1986 ’BİG BANG’Reforms,mainly partnerships

Operating in the City.

GERMANY

NORTHAMERİCA

Independent UK firms such as MorganGrenfell

KleinwortBenson SG Warburg

The merger and arquisition frenzyFaltered,to a certain extend after

The 1987stock market crash.

Deutsche BankArquired MorganGrenfell in 1989

• References:• https://docs.google.com/viewer?a=v&q=cache:JUntByehHDQJ:www.econ-pol.unisi.it/tonveronachi/Seminari/Molyneux_Banking%2520Cri

sis%2520in%2520UK%2520and%2520Europe.pdf+%C4%B1ncome+of+major+british+banking+groups&hl=tr&gl=tr&pid=bl&srcid=ADGEESjts6FS5ye-tGqftnGDN8qS_oQ1HekTJemFeh6VgDs9nHq7ExPOPGPFI8pqgkKDOxBBTz_U0vjTNsBTn-tAVvCyjbP0deYWPx98757ljKzE2yGTJIklyki8o7PjbrQOMAY_a4cF&sig=AHIEtbRy6dLPxDlYD5FfBQEMXYJsBbxgCw

• www.apca.com.au/AR2009• Payment statistic• Peymant systems oversight Report2011• İntroduction to Banking• http://www.econ-pol.unisi.it/tonveronachi/Seminari/Molyneux_Banking%20Crisis%20in%20UK%20and%20Europe.pdf • http://www.ukessays.com/essays/business-finance/structure-and-functioning-of-the-british-baking-industry.php