Top 5 banking stocks of 2021

Highlights

• The UK has the largest banking industry across Europe, with hundreds of banks.
• 2021 has been the best year for the global banking industry since the 2008 financial crisis.

With hundreds of banks as well as building societies, the UK has the largest banking industry across Europe. Since the financial crisis in 2008, this has been the best year for banks across the globe, with the soaring inflation and higher borrowing costs benefiting the lenders.

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Let us discuss UK’s five top banks in 2021 in terms of total assets and market cap.

Lloyds Banking Group PLC (LON: LLOY)

Lloyds Banking Group PLC is one of the largest financial services companies in the United Kingdom. It offers both retail and commercial financial services to millions of customers. The bank’s financial performance has been quite solid during the first three quarters of 2021, and it has contributed well towards the UK’s recovery. Lloyds’ market capitalisation stands at £32,826.96 million as of 24 December 2021. The stocks of the company have given a return of 28.61% in the last one year to its shareholders. Its YTD return stands at 30.19% as of 24 December 2021. The bank, on average, pays a yearly dividend per share of GBP 0.02, and its 5-year average dividend yield is 3.7%.

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HSBC Holdings PLC (LON: HSBA)

HSBC Holdings plc, the second-largest bank in Europe, is a global investment bank. In the third quarter of 2021, HSBC reported a 76% increase in its profits, beating the low expectations of investors due to a slump in its profits in the past few quarters. The FTSE FTSE 100 index constituent holds a market capitalisation of £90,962.93 million as of 24 December 2021. The stocks of the bank has given a return of 16.04% in the last one year to its shareholders. Its YTD return stands at 18.29% as of 24 December 2021. The bank, on average, pays a yearly dividend per share of GBP 0.17, and its 5-year average dividend yield is 4.4%.

Barclays PLC (LON: BARC)

Barclays PLC is a London-headquartered multinational bank, which mainly operates through its two divisions, Barclays UK and Barclays International. Barclays Group has reported record high pre-tax profits in the third quarter of 2021, with strong capital growth and consumer recovery. The market capitalisation of the bank’s stocks was at £31,390.72 million as of 24 December 2021. It has given a return of 23.46% in the last one year to its shareholders. Its YTD return stands at 27.79% as of 24 December 2021. The bank, on average, pays a yearly dividend per share of GBP 0.06, and its 5-year average dividend yield is 2.2%.

Natwest Group PLC (LON: NWG)

Scotland-based banking and insurance holding company, Natwest Group PLC, provides services such as insurance, private banking, personal and business banking. A solid operating performance has been delivered by the group in the third quarter of 2021, with a 4.4% increase in income across the UK and the RBSI businesses. The FTSE 100 index constituent stock has a market capitalisation of £25,553.58 million as of 24 December 2021. The stock has given a return of 35.59% in the last one year to its shareholders. Its YTD return stands at 34.98% as of 24 December 2021. The bank, on average, pays a yearly dividend per share of GBP 0.09, and its 5-year average dividend yield is 1.0%.

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Bank of Ireland Group PLC (LON: BIRG)

Holding a position among the traditional Big Four Irish banks, Bank of Ireland Group plc is a commercial banking firm. Its subsidiary, Bank of Ireland (UK) plc, serves the UK customers of the group. The group has displayed strong results in the third quarter of 2021, with its operating profit going up by 17% as compared to the same period in 2019 prior to the pandemic. The bank’s market capitalisation was at £4,541.94 million as of 24 December 2021. The stocks of the bank have given a return of 48.49% in the last one year to its shareholders. Its YTD return stands at 54.60% as of 24 December 2021.

Source: https://www.ft.com/content/fe2dc704-df40-4eba-8bdf-0d4982c7456d

https://www.advratings.com/europe/top-banks-in-the-uk