Paper for presentation at Economic History Society Annual Conference, 28-30 March 2008, University of Nottingham Britain and the end of the first globalization: ‘financial crisis’, contagion and the British financial system authors



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‘true’ capital includes published capital (i.e. share capital and published reserves) and ‘hidden reserves’, but excludes unrealised profits on investments

n/a = not available

source: extracted from Billings and Capie, 2007, Table 6



Table 9: ‘True’ capital as percentage of total assets, 1930-39


Year

Barclays

Lloyds

Martins

Midland

National Provincial

Westminster

minimum

maximum

mean































1930

8.68

n/a

n/a

8.01

7.81

9.68

7.81

9.68

8.77

1931

9.07

n/a

n/a

9.01

8.20

9.73

8.20

9.73

8.57

1932

7.82

7.42

10.84

7.64

7.12

8.85

7.12

10.84

8.46

1933

7.94

7.73

11.68

8.32

7.18

8.96

7.18

11.68

8.68

1934

7.91

7.93

11.51

8.27

7.32

9.44

7.32

11.51

8.68

1935

7.35

7.65

10.90

7.92

n/a

9.31

7.35

10.90

8.52

1936

7.20

7.89

10.93

7.52

n/a

8.52

7.20

10.93

8.30

1937

7.36

7.38

10.61

7.77

7.70

8.47

7.36

10.61

8.32

1938

7.12

7.57

10.14

8.42

8.21

9.09

7.12

10.14

7.99

1939

6.73

7.01

n/a

8.19

7.61

7.79

6.73

8.19

7.20

source: authors’ calculations from published accounts and archival sources [detailed references to be inserted]


Table 10: Clearing banks’ profitability
Table 10a: ‘True’ post-tax percentage rates of return on capital, 1930-39


Year

Barclays

Lloyds

Martins

Midland

National Provincial

Westminster




%

%

%

%

%

%






















1930

4.2

2.5

n/a

6.1

-2.4

3.3

1931

5.5

4.8

n/a

6.1

3.7

4.1

1932

3.9

5.1

6.6

6.2

6.2

2.8

1933

2.1

4.8

0.9

7.6

4.3

5.4

1934

6.2

5.4

1.5

5.4

9.9

6.9

1935

7.9

5.2

4.8

5.6

n/a

7.4

1936

9.8

4.8

7.3

5.9

n/a

6.4

1937

8.2

5.4

7.8

5.4

n/a

4.1

1938

7.1

5.0

7.6

6.1

n/a

4.4

1939

5.7

5.1

n/a

6.9

n/a

1.6

n/a = calculation not possible as ‘true’ post-tax profits and/or ‘true’ capital figures not available.

source: authors’ calculations, extracted from Capie and Billings, 2004, p.79, Table 2.
Table 10b: ‘True’ post-tax percentage rates of return on capital, decadal averages, 1920-68





1920-9

1930-9

1940-9

1950-9

1960-8



















Barclays

8.9

6.1

7.0

8.6

9.4

Lloyds

8.1

4.8

6.9

7.9

7.9

Martins

n/a

n/a

n/a

7.8

6.5

Midland

5.7

6.1

6.0

6.2

8.5

National Provincial

n/a

n/a

n/a

n/a

5.9

Westminster

8.3

4.6

4.4

6.4

7.2

source: authors’ calculations, extracted from Capie and Billings, 2001b, p.380, Table 2.


Table 10c: ‘True’ post-tax percentage rates of return on total assets, decadal averages, 1920-68





1920-9

1930-9

1940-9

1950-9

1960-8



















Barclays

0.77

0.46

0.28

0.48

0.77

Lloyds

0.66

0.36

0.26

0.43

0.70

Martins

n/a

n/a

0.32

0.51

0.59

Midland

0.42

0.48

0.29

0.30

0.59

National Provincial

0.66

0.32

n/a

n/a

0.58

Westminster

0.85

0.42

0.26

0.37

0.73

source: authors’ calculations, extracted from Capie and Billings, 2001b, p.381, Table 3.



Table 11: Interest rates and ‘asset earning power’, percentage rates, 1930-39





major interest rates

(annual averages)

average lending rate (rate earned on advances)

average rate earned on investments

average rate paid on deposits

average lending rate less deposit rate paid

average lending rate less Bank Rate

Year

Bank Rate

yield on Consols

short-dated gilts yield

L

W

L

W

L

W

L

W

L

W

1930

3.38

4.45

4.31

4.37

4.59

4.34

4.97

1.65

1.37

2.72

3.22

1.00

1.22

1931

4.17

4.40

4.54

4.61

4.80

4.24

4.80

1.62

1.40

2.99

3.40

0.45

0.63

1932

2.83

3.75

3.64

4.34

4.64

3.77

4.66

1.34

1.05

2.99

3.59

1.50

1.81

1933

2.00

3.38

2.09

4.01

4.04

2.80

3.80

0.92

0.60

3.09

3.44

2.01

2.04

1934

2.00

3.08

1.78

4.10

4.11

2.93

3.57

0.85

0.55

3.25

3.56

2.10

2.11

1935

2.00

2.90

2.46

4.03

3.89

2.63

3.53

0.78

0.56

3.24

3.32

2.03

1.89

1936

2.00

2.94

2.45

4.12

3.83

2.63

3.46

0.70

0.55

3.42

3.28

2.12

1.83

1937

2.00

3.30

2.90

4.08

3.85

2.72

3.47

0.69

0.56

3.40

3.28

2.08

1.85

1938

2.00

3.41

2.72

3.84

3.70

2.59

3.57

0.67

0.57

3.17

3.12

1.84

1.70

1939

2.25

3.73

3.30

3.88

3.76

2.62

3.49

0.67

0.62

3.21

3.13

1.63

1.51

L = Lloyds Bank, W = Westminster Bank, data for other banks not available


source: authors’ calculations, extracted from Capie and Billings, 2004, pp. 88-9, Table 8.
Table 12: Unrealised profits on investments as percentage of ‘true’ capital, 1930-39





1930

1931

1932

1933

1934

1935

1936

1937

1938

1939

Barclays

14

-3

8

10

27

25

21

13

11

8

Martins

n/a

n/a

-16

-15

-6

-7

-17

-21

-25

n/a

Westminster

8

1

24

28

41

30

23

12

0

0

data for other banks not available

negative figure denotes unrealised losses

source: authors’ calculations from archival sources [detailed references to be inserted]

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