An analysis of foreign banks financial performance in the UK

Abstract

The paper aims at analysing the financial performance of foreign banks operating in the UK. The benchmarks adopted in assessing the foreign banks’ performance are profitability, liquidity and solvency. Three research tools are used in the assessment: financial ratio analyses, Quiscore and Quirating. The period covered is from 1998 to 2006. The results indicate an overall improvement in the financial performance of foreign banks, but there is clear variation in their profitability and solvency. Besides, it is found that foreign banks are efficient in managing their human capital and they are highly liquid.