June 2011 figures for the main high street banks1
25/07/11

Annual growth of the banks’ net mortgage lending was 1.8% in June, remaining well ahead of the 0.7% for the whole mortgage market in May.

BBA statistics director, David Dooks said:

“Banks continue to lend for house purchase but the weak mortgage market is self-evident, although some growth is coming from the buy-to-let sector to meet demand for rental properties.

“Personal deposits are growing only slowly as some people may be using savings to pay higher household bills.

“Businesses, as has been seen elsewhere, are concerned about the economic outlook and, in weathering difficult trading conditions, they are putting off expansion or investment plans and limiting borrowing.”

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Notes to Editors

1. The main high street banking groups (MBBG) account for some two-thirds of all UK mortgage lending outstanding, provide around half of all consumer credit and, within that, some 60% of all new card credit based on the Bank of England’s ‘lending to individuals’ data. They include the six largest UK retail lending groups: Santander UK (including Alliance & Leicester and Bradford & Bingley deposits), Barclays, HSBC Bank, Lloyds Banking Group, Northern Rock and Royal Bank of Scotland Group.

2. Following a change in statistical reporting in January 2010, securitised loan assets held within special purpose vehicles became included in their parent banks’ reported lending. The impact of this change was adjusted out of earlier flows.

3. The BBA is the leading UK banking and financial services trade association, representing members from 50 countries on domestic and international issues. Members provide the full range of banking and financial services, operating some 150 million accounts in the UK and making up the world’s largest international banking centre.

4. A note explaining lending terms is available from the BBA website at http://www.bba.org.uk/statistics/article/lending-terminology.

5. The introduction of the revised Standard Industrial Classification (SIC2007) in national statistics was reflected in the banks’ statistical reporting at end-January 2011 and impacts on some of the industry-level data covered by this release, where counterparties have been re-classified between sectors. Where possible, estimates of underlying movements have been made to continue consistent time-series trends.