Recent Developments in Global Banking

The global banking sector has experienced significant changes recently, marked by strategic shifts, regulatory challenges, and evolving market dynamics.

Branch Closures in the UK

In 2025, Lloyds Banking Group, encompassing Lloyds Bank, Halifax, and Bank of Scotland, announced the closure of 102 branches. This decision reflects a broader trend, with over 6,000 high street bank and building society closures in the past decade, driven by the increasing shift of customers towards online banking. Such closures may particularly affect elderly individuals in rural areas without internet access.

Banking Sector Outlook for 2025

Analysts predict a positive outlook for major banks in 2025. Citigroup, Bank of America, and Goldman Sachs are expected to outperform, driven by a resurgence in merger activity, a rebound in capital markets, and growth in net interest income. Citigroup is seen as a value play, trading below its historical averages, with potential for revenue growth from increased deal-making. Bank of America and KeyCorp are highlighted for their significant net interest income growth. Goldman Sachs stands out for its revenue potential due to anticipated capital markets momentum.

Banking Industry Bonuses

A survey of 1,700 employees from top investment banks reveals an average expected bonus increase of 42%, following a significant rebound in investment banking fees this year. Bankers at Citigroup are the most optimistic, with an anticipated 73% rise. European banks also show strong expectations, with Barclays bankers predicting a 46.9% increase, Deutsche Bank at 48.8%, and HSBC at 55%, despite cost-cutting measures.

Climate Policy Shifts

Wells Fargo has left the Net-Zero Banking Alliance, a group of global banks committed to reducing greenhouse gas emissions, following a similar move by Goldman Sachs two weeks earlier. This exit comes amid increasing political pressure, especially from Republican officials who are critical of climate-friendly initiatives. Despite these high-profile exits, the Net-Zero Banking Alliance continues to grow, now surpassing 100 member banks since its inception in April 2021.

Conclusion

The global banking sector is undergoing significant transformations, influenced by technological advancements, regulatory changes, and shifting market dynamics. These developments are reshaping the financial landscape, impacting both institutions and consumers worldwide.