BANKING INDUSTRY

Banking Industry

Banking Industry

Introduction

The study is related to the Banking industry of UK. The banking sector of UK holds an important place in the financing of the economy, through the collection and resource mobilization of savings available. The activity of credit institutions that are banks present multiple risks, it appears for this reason the importance of auditing in the bank. It allows to control these risks and to evaluate the activity of banking services in an objective and independent.

Banking industry of UK is involved in economic development. They are to provide agents with a borrowing of the means of payment to finance their investments. As part of financing the economy by lending institutions, banks outstanding set of risk. In addition to this, banking industry in UK perform an economic function by converting most of savers deposits received usually short term to finance the proposed investments by the investors in the medium and long term.

HSBC Holdings

HSBC Holdings is a banking and financial services holding company. Through its subsidiaries, company provides banking and related financial services. Company's products and services are delivered through two customer groups, Personal Financial Services and Commercial Banking, and two global businesses, Global Banking and Markets (treasury and capital markets services, financing, advisory and transaction services, asset management services), and Global Private Banking (manage and preserve wealth). In Dec 31 2010, company had an international network of some 7,500 offices in eighty seven countries, and the total assets were US$ 2,454,689,000,000.

Profitability Ratios

12/31/2010

12/31/2009

12/31/2008

12/31/2007

12/31/2006

ROA % (Net)

0.55

0.24

0.23

0.91

0.94

ROE % (Net)

9.54

5.26

5.15

16.18

15.73

Net Interest Margin %

67.6

65.59

46.62

40.92

45.45

Calculated Tax Rate %

29.33

7.27

36.74

16.54

24.55

Liquidity Ratios

12/31/2010

12/31/2009

12/31/2008

12/31/2007

12/31/2006

Loans to Deposits

0.89

0.85

0.88

1

1.07

Debt Management

12/31/2010

12/31/2009

12/31/2008

12/31/2007

12/31/2006

Total Debt to Equity

1.21

1.39

2.24

2.12

2.34

Asset Management

12/31/2010

12/31/2009

12/31/2008

12/31/2007

12/31/2006

Total Asset Turnover

0.04

0.04

0.06

0.07

0.07

Property Plant & Equip Turnover

8.31

7.58

9.64

9.22

7.35

Cash & Equivalents Turnover

1.61

1.68

3.19

5.07

4.48

Per Share

12/31/2010

12/31/2009

12/31/2008

12/31/2007

12/31/2006

Cash Flow per Share

3.2

0.42

2.57

7.89

7.21

Book Value per Share

8.35

7.37

7.73

10.83

9.36

Royal Bank of Scotland

Royal Bank of Scotland Group is a holding company. Through its subsidiaries, company is engaged in the provision of a range of products and services to personal, commercial and corporate and institutional customers in over fifty countries. Company's operations are organized into the following business divisions: U.K. Retail, U.K. Corporate, Wealth, Global Banking & Markets, Global Transaction Services, Ulster Bank, U.S. Retail & Commercial, RBS Insurance, Central Functions and Non-Core Division. In Dec 31 2010, company's total assets and total deposits amounted to £ 1,453,576,000,000 and £ 609,483,000,000, respectively.

Profitability Ratios

12/31/2010

12/31/2009

12/31/2008

12/31/2007

12/31/2006

ROA % (Net)

(0.07)

(0.17)

(1.09)

0.54

0.75

ROE % (Net)

(1.45)

(5.2)

(41.95)

16.19

16.39

Net Interest Margin %

62.39

48.78

37.71

37.91

42.92

Calculated Tax Rate %

EBT<0

EBT<0

EBT<0

20.73

29.27

Liquidity Ratios

12/31/2010

12/31/2009

12/31/2008

12/31/2007

12/31/2006

Loans to Deposits

1.08

1.08

1.13

1.05

1.06

Debt Management

12/31/2010

12/31/2009

12/31/2008

12/31/2007

12/31/2006

Total Debt to Equity

3.27

3.93

5.93

5.87

2.82

Asset Management

12/31/2010

12/31/2009

12/31/2008

12/31/2007

12/31/2006

Total Asset Turnover

0.03

0.03

0.03

0.04

0.05

Accrued Expenses Turnover

6.01

7.87

7.5

-

-

Property Plant & Equip Turnover

2.37

3.07

3.13

3.36

3.23

Cash & Equivalents Turnover

0.78

1.82

2.43

2.27

4.02

Per Share

12/31/2010

12/31/2009

12/31/2008

12/31/2007

12/31/2006

Cash Flow per Share

0.18

(0.02)

(4.54)

2.68

5.48

Book Value per Share

0.69

1.38

1.49

5.3

12.76

Lloyds Banking

Lloyds Banking Group is a holding company. Through its subsidiaries, company provides a range of banking and financial services in the United Kingdom. The activities ofcomapny are structured into three segments that are Retail Banking in United Kingdom, International and Wholesale Banking and Investments and Insurance.

Profitability Ratios

12/31/2010

12/31/2009

12/31/2008

12/31/2007

12/31/2006

ROA % (Net)

(0.03)

0.39

0.21

0.94

0.86

ROE % (Net)

(0.72)

10.73

7.59

28.24

26.26

Net Interest Margin %

42.76

31.96

43.93

36.14

38.68

Calculated Tax Rate %

146.07

(106.52)

(4.71)

16.98

31.57

Liquidity Ratios

12/31/2010

12/31/2009

12/31/2008

12/31/2007

12/31/2006

Loans to Deposits

1.4

1.35

1.19

1.25

1.3

Debt Management

12/31/2010

12/31/2009

12/31/2008

12/31/2007

12/31/2006

Total Debt to Equity

5.76

6.2

9.9

5.23

5.93

Asset Management

12/31/2010

12/31/2009

12/31/2008

12/31/2007

12/31/2006

Total Asset Turnover

0.06

0.1

0.04

0.09

0.09

Property Plant & Equip Turnover

7.06

12.54

6.03

8.53

6.86

Cash & Equivalents Turnover

1.54

3.29

3.04

6.8

10.11

Per Share

12/31/2010

12/31/2009

12/31/2008

12/31/2007

12/31/2006

Cash Flow per Share

(0.03)

(0.9)

2.91

0.92

0.54

Book Value per Share

0.68

0.68

0.77

1.05

0.97

Barclays Bank

Barclays is an international service provider engaged in retail banking, credit ...