RAROC profiles and pricing benchmarks for 5 United Kingdom banks, sourced from Pillar 3 disclosures.
OpenRAROC tracks 5 banks headquartered in United Kingdom with a combined corporate credit exposure of EUR 967bn. The average United Kingdom bank in our dataset has a cost-to-income ratio of 54.0% and an average corporate probability of default of 2.07%. On a representative BBB+ EUR 25M 5-year term loan, these banks generate an average RAROC of 7.27%.
On the standard sample deal, Barclays is the cheapest lender in United Kingdom, requiring just 241bp to hit a 12% RAROC hurdle. The most expensive is Standard Chartered at 273bp — a difference of 32bp on the same deal. For a EUR 25M facility, that's EUR 79,544 per year in interest expense.
RAROC computed on a representative BBB+ rated, 5-year, EUR 25M term loan at 150bp spread. Click any bank for its full profile.
| # | Bank | C/I | Avg PD | LGD | EAD | RAROC | Min spread |
|---|---|---|---|---|---|---|---|
| 1 | Barclays | 62.0% | 2.90% | 39.4% | EUR 78bn | 7.64% | 241bp |
| 2 | HSBC | 53.3% | 3.07% | 39.9% | EUR 540bn | 7.53% | 244bp |
| 3 | NatWest Group | 48.6% | 1.20% | 37.0% | EUR 109bn | 7.37% | 250bp |
| 4 | Lloyds Banking Group | 53.3% | 1.52% | 41.7% | EUR 57bn | 7.21% | 260bp |
| 5 | Standard Chartered | 53.0% | 1.64% | 15.7% | EUR 183bn | 6.59% | 273bp |
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