Oliver Wyman Report Quantifies the Impact of Delivering Excellence on Corporate Banking Return on Equity
- Performance and underlying levels of excellence vary widely across and within markets
- Location has a strong bearing on the achievable performance of banks in general and on corporate banking in particular - the difference between the best and worst performing market is 31%
- Banks in North America and Australia clearly mark the top end of the range with average RoEs of ~20% and more, while Southern Europe and Central Europe lag other geographies with RoEs below 10%. Asia, the Nordic nations, and the UK have mid-range RoEs between 12% and 15%
Delivering Excellence in Corporate Banking quantifies the impact of excellence on RoE by analyzing a set of drivers of excellence in the areas of pricing and client selection through product platforms, funding and operations. Oliver Wyman analysis shows that by being excellent it is possible to produce a solid, double digit return - at least while provision levels remain low. Banks in economically challenging locations even have the chance to neutralize the strong impact which operating in such a disadvantaged geography has on banks’ economic performance. In addition, being excellent will help banks to maintain their competitive advantages in the value chain.
Additional findings include:
The difference between best and worst performing bank can be explained by the varying levels of excellence between banks
Excellence is not only a driver to improve current performance. It is the best chance for banks to maintaining their competitive advantage, especially in those areas which are likely to be most under threat such as client access, product provision and balance sheet provision
Achieving excellence is a transformative effort. Banks’ executives need to ensure this ambitious agenda is not being crowded out by other priorities
Christian Edelmann, Partner and Head of Oliver Wyman's global Corporate & Institutional Banking practice, said: “The future of corporate banks lies in their own hands. Banks have all the ingredients to ensure they remain relevant and create sustainable returns, but they need to act now. The cost of being mediocre is far higher than the effort required to achieve excellence.”
Thomas Schnarr, Partner in Oliver Wyman’s Corporate and Institutional Banking practice and author of the report, added: “The good news for banks is: you are not starting from a weak position. The bad news is: becoming excellent is as transformative as adopting a healthier lifestyle in that you need determination, perseverance and discipline. Those who master this challenge can reap significant benefits.”
For a copy of the report, please click here (http://goo.gl/bZ9KJL).
About Oliver Wyman
Oliver Wyman is a global leader in management consulting. With offices in 50+ cities across 26 countries, Oliver Wyman combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization transformation. The firm's 3,700 professionals help clients optimize their business, improve their operations and risk profile, and accelerate their organizational performance to seize the most attractive opportunities. Oliver Wyman is a wholly owned subsidiary of Marsh & McLennan Companies [NYSE: MMC]. For more information, visit www.oliverwyman.com. Follow Oliver Wyman on Twitter @OliverWyman.
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Contact
Oliver Wyman
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2016년 7월 12일 14:00