Page 41 - TSB G Case Study

Challenger Banks

Smaller Larger
Big Five
challengers challengers

AIB UK,
Paragon,
Secure Trust Bank, Clydesdale, HSBC,
Aldemore, RBS,
Williams & Glyn,
Metro, Lloyds,
TSB,
Close Brothers, Barclays,
Virgin Money,
OneSaving, Santander
Handelsbanken
Shawbrook

Ref (12)

Between 2014 and 2015 many challengers floated on the

stock exchange with CYBG (the holding company for

Clydesdale Bank and Yorkshire Bank), Virgin Money,

Aldermore, Shawbrook, OneSavings, and Metro all

became constituents of the FTSE 250

During 2014/2015 these banks increased their lending

assets by 31.5 per cent whilst over the same period the

lending assets of the big five declined by 4.9% (12)

Challengers have also outperformed in terms of returns

on equity (See Diagram 1). Smaller challengers returned 17

per cent on average in 2015, compared with the big

banks' 4.6 per cent. (12)