- UK’s bank branches fell by 4.55 per cent, or 267 branches, between April and June, to 5,599 branches due to being impacted by the pandemic.
- Now 60.1 per cent the UK population have access to a bank within 2 km, compared to 61.8 per cent in Q1 2021.
The number of UK’s bank branches fell by 4.55 per cent, which equates to 267 branches, between April and June, to 5,599 branches due to being impacted by the pandemic, according to new data from the City watchdog, the Financial Conduct Authority (FCA)
Now, about 60.1 per cent of the British population have access to a bank’s branch within a 2 km distance, down from 61.8 per cent in Q1 2021.
Banks such as Virgin Money (LON: VMUK) and HSBC (LON: HSBA) recently shut their branches as the pandemic caused lenders to turn more towards online banking services.
Some other banks which had already shut branches since the onset of the crisis include Lloyds Banking Group (LON: LLOY), Sabadell-owned TSB, the Co-operative Bank and more.
Let us explore the investment prospects of FTSE listed stocks Virgin Money and HSBC:
- Virgin Money PLC (LON: VMUK)
FTSE 250 index listed firm Virgin Money is a holding company that owns Clydesdale Bank plc. Clydesdale Bank trades as Clydesdale Bank, Yorkshire Bank and Virgin Money.
The company recently reported its FY 2021 trading update for the year ended on 30 September, where its statutory profit before tax was estimated to be £417 million for the full year. Additionally, its statutory RoTE was at 10.2 per cent, compared to a negative 6.2 per cent in FY 2020.
Its FY 2021 underlying profit before tax is expected to increase by 546 per cent to £801 million, from £124 million in FY 2020 due to strong financial momentum and amidst an improving macro-economic scenario.
(Image Source: Refinitiv)
Virgin Money’s shares ended at GBX 171.60 on 9 November, while the FTSE 250 index closed at 23,367.14.
The company’s market cap was at £2,471.03 million on Tuesday. The group had a one-year return of 43.48 per cent on 9 November.
- HSBC Holdings PLC (LON: HSBA)
FTSE 100 index listed firm HSBC is a UK based multinational bank. The company was among several leading UK banks to commit to ending coal-related financing as part of the UK’s initiative, the Powering Past Coal Alliance.
(Image Source: Refinitiv)
HSBC’s shares ended at GBX 429.70 on 9 November, while the FTSE 100 index closed at 7,274.04.
The company’s market cap was at £87,663.94 million on Tuesday. The group had a one-year return of 14.89 per cent on 9 November.