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Midland: Turnaround After a Near-fatal Decline

  • David Rogers
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Abstract

Just as Lloyds had been the best performer of the Big Four since the mid-1980s, so had Midland been the worst, until the past few years when it has made a remarkable recovery. From 1988 until 1993, for example, its average ROE after taxes was 4.8 per cent, compared with Lloyds at 19.7 per cent over the same period, NatWest at 6.8 per cent and Barclays at 5.8 per cent. By contrast, from 1994 to 1997, Midland’s average ROE after taxes was up to 22.9 per cent, comparing favourably with NatWest at 12.8 per cent, Barclays at 19.8 per cent, and Lloyds at 31.2 per cent.1

Keywords

Financial Time Investment Banking International Banking Retail Bank Domestic Banking 
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Notes and references

  1. 1.
    Big Four annual reports.Google Scholar
  2. 2.
    The following accounts draws heavily from the company history by A.R. Holmes and Edwin Green, Midland, Battsford, 1986.Google Scholar
  3. 3.
    Ibid., Chs 3–6.Google Scholar
  4. 4.
    Lehman Brothers, UK Clearing Banks, 1998 Annual Review, pp. 113 and 114 on Lloyds; and Midland Bank plc, Annual Report and Accounts, 1997, pp. 1 and 10.Google Scholar
  5. 5.
    Midland data come from its 1997 annual report, p. 1; data on Barclays, NatWest, and Lloyds are from Lehman Brothers, UK Clearing Banks, 1998 Annual Review, 23 July 1998.Google Scholar
  6. 6.
    Annual Abstract of Banking Statistics, Vol. 14, 1997, p. 66.Google Scholar
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    Michael Collins, Money and Banking in the UK: a History, Croom Helm, London, 1988, p. 207 and Holmes and Green, op. cit., p. 150.Google Scholar
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    Holmes and Green, op. cit., Ch. 4.Google Scholar
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    Euromoney, ‘Midland’s Foreign Adventures’, July 1984, p. 68.Google Scholar
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    Holmes and Green, op. cit., Ch. 6.Google Scholar
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    This summary is from interviews with senior staff at Midland.Google Scholar
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    Holmes and Green, op. cit., pp. 53–6.Google Scholar
  15. 15.
    Ibid., p. 53.Google Scholar
  16. 16.
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    Russell Taylor, Going for Broke, Simon & Schuster, New York, 1993, pp. 87–8.Google Scholar
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    These phrases are taken from various articles in the Financial Times.Google Scholar
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    This review of Sir Kit McMahon’s experiences as CEO of Midland relies heavily on interviews with Midland senior management and staff who were there at the time.Google Scholar
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    Midland Bank plc, Annual Report and Accounts, 1997, p. 1.Google Scholar

Copyright information

© David Rogers 1999

Authors and Affiliations

  • David Rogers

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