Which UK banks are closing branches this year?

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Which UK banks are closing branches this year?

 Which UK banks are closing branches this year?
Image source: SFIO CRACHO, Shutterstock.com

Highlights

  • As more and more people move to online banking, several lenders have decided to close branches and ATMs.
  • The FCA has criticised the lenders for not thoroughly examining the impact the closures may have on the customers.

Several banks and building societies in the UK have shut down a number of branches and ATMs across the country. The lenders claim that people are now transitioning to digital money and online banking, and as a result, fewer customers are physically visiting the branches or the ATMs.

However, concerns have been raised over the closures, stressing that they could be devastating for those who rely on physical branches for their banking needs. On Tuesday, the Financial Conduct Authority (FCA) criticised the lenders for failing to thoroughly examine the impact of closures on the customers.

Several banks and building societies have shut down a number of branches and ATMs across UK.

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In a statement, the financial watchdog said the lenders need to consult more widely before taking such actions. Under its proposed updated guidance for the lenders, the FCA highlighted the need for a more detailed analysis of how they assess the impact of closures on customers. It also proposed extending communications to other groups like local charities and councils to understand how the changes to the services will impact the customers.

Let us look at a few major lenders listed on the London Stock Exchange, which have announced the closure of branches or ATMs recently.

Lloyds Banking Group plc (LON: LLOY)

Lloyds is UK's largest domestic bank and is listed on the blue-chip FTSE 100 index. In March, it announced that it'll shut down 60 branches across the country. The closure includes 24 branches of Lloyds Bank, 19 of Bank of Scotland, and 17 of the Halifax brand. The recent announcement will take the total number of closures since June 2021 to over 150.

The group has a market capitalisation of £30,149.69 million as of Wednesday. Over the past one year, its share value has depreciated by 7.65%, and the year-to-date return stands at -7.56%. The shares were trading at GBX 44.15, up 1.79%, as of 8:14 am GMT+1 on 15 June 2022.

HSBC Holdings Plc (LON: HSBA)

HSBC is among the world's largest banking and financial services institutions. In March, it also announced the closure of 69 branches across the UK, saying that less than half of its customers are now actively using its branch network. In January last year, the lender had made a similar announcement when it decided to shut down 82 branches.

The company holds a market cap of £104,516.98 million as of Wednesday, and its shares were trading 1.42% up at GBX 527.80 at 8:25 am GMT+1 on 15 June. The shares have given a return of more than 20% to the investors over the past year, while the YTD return stands at 17.49%.

Barclays Plc (LON: BARC)

Barclays is another banking behemoth headquartered in London and operating in several countries. The company announced last month that it is closing 27 more branches this year. This will bring the total number of closures in 2022 to 103. The latest announced closures are in addition to the 63 branches it earlier confirmed of closing this year.

Shares of Barclays were up 1.74% at GBX 159.48 as of 8:22 am GMT+1 on 15 June 2022 with a market capitalisation of £26,118.38 million. The one-year return from the shares currently stands at -10.93%, and the YTD returns are at -14.62%.

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.

Several banks and building societies in the UK have shut down a number of branches and ATMs across the country. The lenders claim that people are now transitioning to digital money and online banking, and as a result, fewer customers are physically visiting the branches or the ATMs.

However, concerns have been raised over the closures, stressing that they could be devastating for those who rely on physical branches for their banking needs. On Tuesday, the Financial Conduct Authority (FCA) criticised the lenders for failing to thoroughly examine the impact of closures on the customers.

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