The five years to 2012-13 were some of the most volatile in the history of the UK's banking industry.
As global capital markets plunged and banks stopped lending to each other, massive asset write-downs wiped out bank equity, resulting in the collapse of Northern Rock and forcing the partial nationalisation of those left standing.
Since then the industry has endured a torrid time, with revenue declining in 2008-09, 2009-10 and 2010-11. After returning to growth in 2011-12, the industry will suffer another challenging year in 2012-13, as the weak domestic economy weighs on credit demand and results in further losses.
Over the five years to 2012-13 industry revenue was expected to decline at a negative compound annual growth rate (CAGR) of 5.5% to reach £119.3 billion.
The UK's banking sector, following the US and Japan, is the world's third largest and considered foremost in terms of efficiency, dynamism and return on capital. It services 95% of the population with about 3.5% of UK's total workforce - over a million workers.
The outlook for the industry over the next five years is only marginally better, with challenging conditions expected to persist as a sluggish economic environment and rising regulation weigh on revenue and squeeze margins.
The UK banking industry has been forecast to increase at a CAGR of 1.8% over the five years to 2017-18 to total £130.2 billion.
For more information on the UK banking industry, see the latest research: UK Banking Industry Report
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