September 2011 figures for the main high street banks1
25/10/2011

Annual growth of the banks' net mortgage lending was 1.6% in September, remaining ahead of the 0.6% for the whole mortgage market in August.

BBA statistics director, David Dooks said:

"There was a small net increase in business lending to the non-financial sector in September. Firms are continuing to build up cash reserves where possible, while concerns about the economy may be putting some investment intentions on hold.

“Households are limiting their borrowing in the face of unemployment concerns and pressure on household finances amid general economic uncertainty.

“A modest stimulus to gross mortgage lending is coming from the buy-to-let sector as rental yields continue to improve”.

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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.