UK retail banks may have to consider actions such as closing a third of their branches to restore profitability, the FT said, citing a new study by Bain. The business consultancy group group concluded that UK retail banks face a tough future in which their return on equity (RoE) could be 50 per cent lower than pre-recession peaks. Bain said that over the past two decades, leading UK retail banks have posted RoE – profit divided by equity – averaging 24 per cent and are unlikely to see those levels again.

This entry was posted by Stacy-Marie Ishmael on Monday, August 17th, 2009 at 4:39 and is filed under Capital markets. Tagged with Banks, UK. Edit this entry.