Millions of households in the UK could struggle to access cash as the country is losing high street banks at an alarming rate.
By December 2022, 326 bank branches would be closed this year.
Millions of vulnerable households in the UK could struggle to access cash as the country is losing high street banks at an alarming rate. The closures come as more people turn to online and mobile banking.
UK’s largest cash machine network Link has claimed that as many as 226 bank branches would be shut by December this year. These closures across England, Scotland, Wales, and Northern Ireland would take the year’s total count to 325.
Link’s data follows a report by the Scottish Affairs Committee, which warned that half a million Scots who rely on cash are at the risk of being cut off from their own money. At 53%, Scotland has reported the highest number of closures since 2015. On the other hand, 4,685 branches have been shut across the UK since 2015, as per consumer group Which?
To safeguard those affected by the closures, the government recently announced that the Financial Conduct Authority (FCA) will be authorised to impose measures on banks and building societies to ensure sufficient deposit and withdrawal facilities are available for the households that require them.
Let's take a look at 3 FTSE 100-listed banking stocks in the wake of this information.
Lloyds Banking Group Plc (LON: LLOY)
Lloyds Group is among the country's largest banking and financial services providers. In May, the group, which owns Lloyds, Halifax, and Bank of Scotland, announced the closure of 28 more branches by the end of the year. This means the group will close a total of 88 branches this year. The group boasts of a market cap of £28,158.15 million, and its Earning Per Share (EPS) is currently at 0.08. The FTSE 100 constituent’s shares were trading at GBX 41.78, up by 1.84% at around 10:19 AM (GMT+1). Its stock value has deteriorated over the past 12 months, with the yearly return standing in the negative territory at -12.09% and the YTD return at -12.75%.
HSBC Holdings Plc (LON: HSBA)
The British multinational bank and financial services holding company is set to close 56 branches by the end of this year, according to data from Link. As of 15 July, the company has a market cap of £102,592.19 million. Its Earning Per Share (EPS) is 0.62. The FTSE 100 constituent’s shares were trading at GBX 515.80, up 0.80% at around 10:26 AM (GMT+1). The stock has appreciated over the past 12 months, with its yearly return climbing to 25.29% and YTD return reaching 15.07%.
Barclays Plc (LON: BARC)
British multinational bank Barclays Plc will be closing 71 branches by December, Link reported. With a market cap of £23,902.54 million, the bank’s Earning Per Share (EPS) stood at 0.38 as of 15 July. The FTSE 100-listed company shares were trading at GBX 149.26, up 2.56% at 10:30 AM (GMT+1). The share value has depreciated over the past 12 months, with the yearly return slipping to -13.56% and the YTD return reaching -21.10%.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.