Comparing 2019 to 2022, four major high-street banks - Barclays, HSBC, Lloyds and NatWest - have made £7 billion from net interest income according to an analysis made by the organisation.
This is the extra money banks have made by raising interest rates for borrowers and not passing it on in raised interest rates for savers’ deposits.

Across the big 4 banks, net interest income has increased by 28% since the second half of 2019. In the final two quarters of 2022, banks reported the extra £7bn of net interest income compared to the final two quarters of 2019.

A further analysis of Office for National Statistics (ONS) data shows that the rising cost of household spending on financial services may contribute a further 1.5 percentage points towards household inflation, worsening the cost of living crisis.

Across the economy, financial sector profits have risen nearly three times as quickly as workers’ income (14.2 per cent compared to 4.9 per cent) since the Bank of England’s rate rises began in late 2021. Unite is continuing to organise and win fair pay for workers across the finance sector.

The analysis by Unite also revealed that the profits of the UK’s big four banks have spiked by 42 per cent since before the pandemic. In 2022, the big four banks posted combined record profits of an eye watering £33 billion.

Unite general secretary, Sharon Graham, said: “Unite’s research shows how the banks have already made billions in extra profit from interest rate rises. If the MPC raises rates again they stand to gain even more. Banks treat these rises as a licence to pick the pockets of householders across Britain.

“Unbridled profiteering is taking billions of pounds away from workers and communities and putting it into the hands of corporate Britain. Last year, the profits of the big four banks soared to an eye watering £33 billion. Politicians need to wake up. It’s only by taking on runaway profiteering that we can end the cost of living crisis.”