Lloyds Remains Top U.K. Mortgage Lender as Challenger Banks Grow Rapidly
July 18 2018 - 10:30AM
Dow Jones News
By Adam Clark
Lloyds Banking Group PLC (LLOY.LN) maintained its dominance in
the U.K. mortgage market in 2017 but specialist and smaller lenders
grew rapidly, as an uncertain British economy failed to deter
competition to provide housing loans.
Lloyds increased its gross lending by 7% to 41 billion pounds
($53.5 billion) in 2017, according to figures from industry body UK
Finance. This increased Lloyds' market share of gross lending to
16% from 15.5% in 2016.
The domestic U.K. bank also remained the leading lender by
outstanding mortgage balances with GBP290.3 billion, but its market
share fell to 21% from 22%.
Behind Lloyds, the next three largest gross lenders--Nationwide
Building Society, Royal Bank of Scotland Group PLC (RBS.LN), and
the U.K. arm of Banco Santander S.A. (SAN.MC)--all recorded lower
volumes than in 2016. Meanwhile, challenger banks and specialist
lenders delivered an almost 20% increase in lending activity, said
UK Finance.
RBS overtook Barclays PLC (BARC.LN) to become the fourth-largest
lender by balances outstanding, having increased its total book
size by 7%. Nationwide and Santander remained the second and
third-largest lenders by book size, respectively.
UK Finance said that overall it saw more lenders competing for
business and gross lending continuing on an upward trend. The
organization said the pace of lending in 2018 so far has outpaced
its prediction of gross lending of GBP260 billion, representing 2%
growth, largely due to stronger-than-expected remortgage
activity.
Write to Adam Clark at adam.clark@dowjones.com
(END) Dow Jones Newswires
July 18, 2018 10:15 ET (14:15 GMT)
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