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Highlights
- The gender pay gap in major financial institutions in the UK has reduced, but there are still some exceptions, including UBS and Deutsche Bank.
- Data related to pay gap based on ethnicity was also voluntarily disclosed by various companies for the first time, which include Aviva and UBS.
Last year, the gender pay gaps in major financial institutions in the UK have reduced, but there have been some exceptions including UBS and Deutsche Bank, whose pay gaps have increased by approximately 1% to 29% and 33.4%, respectively. Based on the analysis published in a recent Reuters report, the financial services sector in the UK, which plays a key role in the country's economy, is among the most inequitable sectors.
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UK companies employing over 250 people had to disclose the gap in pay and bonuses offered to men and women at the workplace since 2017, ahead of the deadline of 4 April 2022. Data related to the pay gap based on ethnicity was also voluntarily disclosed by various companies for the first time, which includes Aviva and UBS. As per the data gathered, the biggest victims of these pay differences were the people of colour.
Considering 21 major UK financial institutions, the average gender pay gap has narrowed by over 1% as compared to last year, standing at 32.1%. Even though the gap has reduced, it is still significantly high as compared to the mean pay gap of all UK employees, which stood at 14.9%, as per April 2020 data. There was only one financial firm, Admiral, which has a pay gap of 14.4%, which was below the UK average.
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Top UK banks including HSBC, Lloyds, Barclays, NatWest, Standard Chartered, were also a part of the Reuters survey. While HSBC and Barclays revealed that their ethnic minority staff was paid almost as much as their white staff, NatWest and Lloyds revealed that they were paying them less as compared to whites. The overall data represented that the racial inequality in the industry has been increasing lately, with pay gaps for people of colour in Barclays and HSBC standing at 19.2% and 22.9%, respectively.
Let’s look at the share price performance of 3 of the above-mentioned major UK banks.
HSBC Holdings plc (LON: HSBA)
With a market cap of £106,038.28 million, the shares of the investment banking firm, HSBC Holdings plc, were down by 0.25% at 8:00 AM (GMT+1) on 5 April 2022, at GBX 524.60. HSBC is currently offering a dividend yield of 3.6% a year. The FTSE100 bank has provided its shareholders with a return of 24.20% over the last one year as of 5 April 2022.
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NatWest Group plc (LON: NWG)
With a market cap of £22,856 million, the shares of the retail banking firm, NatWest Group plc, were up by 0.05% at 8:15 AM (GMT+1) on 5 April 2022, at GBX 215.30. NatWest is currently offering a dividend yield of 4.9% a year. The FTSE100 bank has provided its shareholders with a return of 9.61% over the last one year as of 5 April 2022.
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Lloyds Banking Group plc (LON: LLOY)
With a market cap of £32,905.90 million, the shares of the retail banking firm, Lloyds Banking Group plc, were up by 0.24% at 8:18 AM (GMT+1) on 5 April 2022, at GBX 47.00. Lloyds is currently offering a dividend yield of 4.3% a year. The FTSE100 bank has provided its shareholders with a return of 9.91% over the last one year as of 5 April 2022.
Tags: pay gap, gender, ethic pay gap, inequality, FTSE 100, HSBC, Lloyds, NatWest, dividend yield, UK banks, Reuters, UBS, Deutsche Bank, Aviva, Admiral