1 / 16 UK banks are among the most stable, with a lower risk of financial collapse than the US, according to a new report.
According to the report from Credit Suisse, which has been compiling the report since January, the UK’s five biggest banks (HSBC, Lloyds, HSBC, Barclays and Lloyd) are among Europe’s best.
Credit Suise says that UK banks have avoided the “unusual but potentially disruptive event” of a government shutdown that could have been caused by Brexit, the country’s decision to leave the European Union, or the recent collapse of the US financial sector.
“The UK’s banks are well positioned to handle a financial crisis,” said David Shillito, Credit Suiser’s head of UK banking and capital markets.
The UK’s biggest banks are not the only ones that have been resilient.
HSBC has been in a “very strong position” for more than a decade, according the report.
The bank is currently under the control of a group of UK shareholders, including former UK prime minister David Cameron and current Prime Minister Theresa May, and has seen its market value rise by more than 40 percent.
Lloydcds is one of the most-vulnerable UK banks, having been sold off by its parent company in 2015 and has lost more than £4 billion in value since.
HSBC’s losses were the highest among UK banks in 2017, the report found.
The biggest losers were Lloydbcs parent company Lloyden and its subsidiary, HBOS.
The group is in talks with the Government to sell the assets to repay its debts, which are estimated to be in excess of £1.2 trillion.
Credit Searchers’ research found that Britain’s five banks are “highly stable” with a “low risk of default.”
Barclays has survived the most extreme event in the past 25 years, the Bank of England’s decision in June to keep interest rates at record lows and to leave a bond market in the process.
The lender’s average return on equity since 2012 has been 1.6 percent, according a Bloomberg article from November.
Barclays has had a “pretty good” year.
In the 12 months through December, it was the third-most profitable bank in the US and the eighth-most successful.
Lloands, the group’s parent company, has had an “exceptional” year, the Credit Suisers report said.
“Its return on capital has been relatively high, while its risk of failure has been very low,” the report added.
Llobds has been “very, very strong,” Credit Suppers report said, while Barclays has been the least successful of the five.
The report concluded that Lloyda is the “most stable” UK bank, having survived the largest “disaster” in the financial sector since the financial crisis.
In that time, Llobd has returned about 5 percent of its assets and has been profitable for most of the year.
Llombard is the only one of Britain’s banks that has been sold or merged.
Its parent company is in discussions with regulators about selling the bank.
Barclays was sold in December, but it still has a good chance of survival in the market, the study said.