Get our occasional Market Report emails

sent straight to your inbox

There’s no charge for this.

Getting latest data loading
Home / Should I Buy Bank Shares?

Should I Buy Bank Shares?

UK Bank Shares

If you’re asking ‘should I buy bank shares?’, you’re not alone. It’s a popular sector, and our clients often ask us the same question. We’ll look at the facts to help you make an informed decision.

Banking on History

The recent banking crisis and subsequent effect on UK bank shares can be traced back to the deregulation of financial markets in the 1970s and 80s. It allowed banks to raise funds not only from investors, but also from money markets across the world. Controls were also relaxed on the percentage of investors’ funds that could be lent. The effect of this was to liberalise credit making it easier to borrow money.

During 2007/8, oil prices rose sharply causing fears of a trade recession, at the same time rising unemployment meant an increase in mortgage defaults. Banks became worried about the value of their mortgage books as the relaxed lending criteria meant that there were a large percentage of sub-prime mortgages (mortgages taken on by low income borrowers on low value properties). Banks became reluctant to lend to other banks, leading to serious liquidity problems.

Famously, at the end of 2007, The Bank of England provided financial support to rescue Northern Rock Building Society. Despite being one of the most popular and widely held investments amongst UK bank shares, Northern Rock was finally nationalised in February 2008. Then in September of the same year, the largest bankruptcy in the world took place when Lehman Brothers Bank failed and the US Government refused to come to their rescue.

In mid-January 2009, amid speculation of a new government bail-out package, UK bank shares fell dramatically and, just as the crisis appeared to be recovering, stocks plunged once more. Then at the end of January there was a dramatic peak in Barclays’ share price, closely followed by other UK banks. It appears that the rally followed a letter from Barclays’ chief executive to its shareholders, reassuring investors that Barclays’ resources were more than capable of riding the storm.

During the recent turmoil it has been possible to pick up UK bank shares at lower prices than in recent years. However, due to pressure, caused by low interest rates, on house prices and net interest margins, UK banks may fail to attain decent profitability for some time (or, at least, to the same degree they had enjoyed previously). However, some investors still value UK bank shares as a good long term investment.

The Royal Bank of Scotland Group (RBS)

RBS is ranked second largest bank in the world by assets. The UK Government holds an 84% stake but voting rights are limited to 75% in order for RBS to keep its listing on the London Stock Exchange. The RBS group controls The Royal Bank of Scotland PLC, National Westminster Bank and Ulster Bank.

Lloyds Banking Group

Lloyds TSB was created when Lloyds Bank and the Trustee Savings Bank merged in 1995, creating the largest bank in the world by market share. Then, in January 2009, it became Lloyds Banking Group on the acquisition of HBOS.


First opening for business in 1865, HSBC is named after its founder member, the Hongkong and Shanghai Banking Corporation Limited. HSBC changed its headquarters to London, and became HSBC Holdings after the acquisition of Midland Bank in July 1992. HSBC Holdings shares are held by over 220,000 shareholders, and historically pay dividends on a regular basis.


In 1690 James Barclay’s father-in-law started trading as a goldsmith banker in Lombard Street, in the City of London. Mr Barclay became a partner in 1736. The company later joined 19 other banking businesses and became Barclay and Company Limited, then in 1917 became Barclays Bank Limited. Now Barclays PLC has its world headquarters in Canary Wharf and trades in 50 countries. Barclays has historically paid regular dividends on shares, and it currently also offers a dividend reinvestment plan (DRIP). For those asking ‘should I buy bank shares’, Barclays is a common choice.

The Future

If you are thinking about investing in UK bank shares, you should consider that although prices are temptingly low, the market is very volatile and may stay like that for some time to come.

Some analysts see the prospect of another recession looming, considering the well-publicised current global challenges. Some traders are waiting for a slowdown to come to fruition, in the hope that it will present a good time to buy. Markets are always erratic and hard to predict, none more so than UK bank shares at the present time. In order to get the best perspective on future trends, investors should research thoroughly.

Conduct your own research into market trends and the myriad of conflicting predictions, along with information from Accendo Markets’ analysts. Register for our free ‘Trading Opportunities’, sent regularly to your inbox, for a unique perspective in where investment opportunities may be found. This will give you the best insight into the future of UK bank shares, enabling you to find the answer to the big question: ‘Should I buy bank shares?’

Nothing on this website should be taken as a personal recommendation. It does not take into account your personal circumstances or appetite for risk.

Latest Trading Opportunities

Upcoming UK100/250 Dividend List

View Friday 13 May 2022

Week in Advance: Monday 16th - Friday 20th May 2022

View Friday 13 May 2022

Upcoming UK100/250 Dividend List

View Thursday 5 May 2022

Week in Advance: Monday 9th - Friday 13th May 2022

View Thursday 5 May 2022

Upcoming UK100/250 Dividend List

View Friday 29 April 2022

Get our Market Report emails sent straight to your inbox

Don’t miss out on regular trading opportunities!

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

4.81 Average

156 Reviews


I have found Accendo staff very helpful,,and informed. I have traded with you for some years now and have no regrets. Keep up the good work!

Posted 3 years ago

Shaun D

since signing up for Accendo I have had two traders, Mark and Sam. I have found both of these to be very informative about how CFD's work and they have made it very easy for me. Since working with Sam (last four months) my trading knowledge has improved and I can make more informative decisions about which Company's to invest with. Keep up the good work Sam.

Posted 3 years ago


I am very happy with the service I get from Accendo Markets and in particular Amrit Panesar. He is very professional and pleasant to speak to and this counts for a lot.

Posted 3 years ago

Shreekant P

Its a good site for dealing stocks worldwide and having good staff.

Posted 4 years ago

Nick W

Krishan Appiah is one of the most dedicated / informative broker I have ever had.

Posted 4 years ago

Thomas I

Since I have been trading with Accendo Markets I have experienced much greater success than has been my experience with other trading companies mainly due to the help given by, what I consider to be my terminal with the trading floor, Mark, who has been most helpful in reminding me of the progress of my positions throughout the day and keeping me in touch with those positions so that I can more easily make successful trades when appropriate instead of missing out on opportunities through lack of attention. He draws my attention to the situations and enables me to make profitable trades. I am very happy with the situation at the moment and am enjoying the experience. Thomas Irving.

Posted 4 years ago

Kartik A

Accendo markets keep me connected with the market and its very well followed by Mr. Krishan Appiah ,which helps me to take certain decision on time.

Posted 4 years ago

Peter p

I have been trading with Accendo Markets and James Abbott my account manager for coming on 5 years now, James Abbott the senior trader of Accendo Markets provides me with up to minute information when I need it and find him very easy and professional to deal with. Whenever I need to trade or am not sure about anything James is always their to help with any queries I may have. The Accendo Platform I find very easy to use and navigate although it has been slightly changed over the years but definitely for the better. Personal when I do trade 90% of the time, I rather telephone call to place my trade dealings and if James is not there to take my call I find others at Accendo like Sam, Lee take my trades and are. All in all everyone at Accendo Markets are amazing to deal with and my relationship with Accendo is just as I like it. Peter Petrou

Posted 4 years ago

Mrs. J

"Our Trader, Aymen Azizi, has been nothing but attentive to our every need throughout our long relationship with him. No issue is too small, full explanations on all our questions."

Posted 4 years ago

Brian R

I have been with Accendo for a long time now, ten or twelve year's, probably more . As I told Sam (my trader) I thought that CFDs were better than sex . I stopped trading for a few years and only started back about a couple of months ago. But it is as if I had never been gone , so to speak. Sam has helped me every step of the way, at my age one forgets things. I have only praise for Accendo and as far as I am concerned the platform is the best . Now I am back trading at 71 years of age, I might even try sex again. Brian Robertson.

Posted 4 years ago

Jim W

I understand how to make a profit with CFDs. I am restricted by the range of companies I have knowledge of. Although, I am not sure that is a big problem. Tom Robertson is a very fine man.

Posted 4 years ago

Rebekah S

Well, I would not be trading without the help of my trader, Sam Alnakkash. He provided a really great overview of Accendo Markets, an insight into trading in general and how to get started in trading online. His advice, support and training has been fantastic all along the way, enabling me to start trading earlier than I would have done had I not had the support. He has also been very adept at understanding me as a client in order to help me achieve my trading goals. I still have a lot to learn and hope I will get there.

Posted 4 years ago

Nick z

I like the updates on shares I trade. Updates from Bloomberg and Reuters plus industry updates and breaking news. I've had Matt Grice and James Abbott and found both to be excellent. I would like to continue a personal service with James. He understands how and which stocks I trade.

Posted 4 years ago

Steve O

Excellent, knowledgable broker interaction and communication, coupled with very good research and analysis.

Posted 5 years ago

William P

Being new to direct trading I needed help and was given all the time and advice that I needed to feel fully able to make decisions on what I wanted to invest in. I asked for and got exactly the type of info I required provided by Tom Cook, who I would recommend to anyone looking for help.

Posted 5 years ago

Mr. W

I have been dealing with accendo for the past 8 years my broker Amrit I find him very helpful when he is there lol and had many offers to change but will not do it Bill Roberts

Posted 5 years ago

Zoran N

Very good all round service! Timely market information. (charts + trends coverage ) On the ball accounts managers ,quickly available and alert . Part of my success owed to my personal manager Mr Sam Springet , than you.

Posted 5 years ago

Mr Brian C

Easy to deal with.....

Posted 5 years ago

Muhammed S

Accendo markets are great for trading cfds and their research is second to none! Aymen manages my account is extremely helpful and always keeps me updated on market info. Thanks again

Posted 5 years ago

Mr Buta B

Always available, whenever I call I get straight through to someone that can and will help. The staff are very knowledgeable, helpful and easy to talk to.

Posted 5 years ago

Stephen B

Aymen Azizi keeps an eye on what is happening in the market and informs me with timely relevancy, email call, and txt.

Posted 5 years ago