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June 2012

IBISWorld Industry Report J5511-GL

Global Commercial Banks
Global Commercial Banks

June 2012

About This Industry ................................. 2
Industry Definition ........................................ 2 Main Activities ............................................. 2 Similar Industries ......................................... 2 Additional Resources ................................... 3

Basis of Competition .................................... 27 Barriers to Entry........................................... 28 Industry Globalization .................................. 29

Major Companies .................................... 30
Bank of America Corporation ....................... 30 JPMorgan Chase & Co. ............................... 31 HSBC Holdings plc ...................................... 33 Citigroup Inc. ............................................... 34 Industrial and Commercial Bank of China Limited ......................................................... 35 Other Players .............................................. 36

Industry Performance .............................. 4
Executive Summary ..................................... 4 Key External Drivers .................................... 4 Current Performance ................................... 5 Industry Outlook .......................................... 9 Industry Life Cycle ....................................... 12

Products & Markets ................................. 13
Supply Chain ............................................... 13 Products & Services .................................... 14 Demand Determinants ................................. 17 Major Markets .............................................. 18 International Trade ...................................... 19 Business Locations...................................... 20

Operating Conditions .............................. 37
Capital Intensity ........................................... 37 Technology & Systems ................................ 37 Revenue Volatility ........................................ 38 Regulation & Policy ..................................... 38 Industry Assistance ..................................... 39

Key Statistics ........................................... 40
Industry Data ............................................... 40 Annual Change ............................................ 40 Key Ratios ................................................... 41 Jargon ......................................................... 41

Competitive Landscape ........................... 23
Market Share Concentration ........................ 23 Key Success Factors ................................... 23 Cost Structure Benchmarks ......................... 25

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Global Commercial Banks

June 2012

2

About This Industry
Industry Definition
This industry comprises of banking enterprises that provide commercial, industrial and consumer loans as well as offering deposit facilities to their customers. These corporations also accept term deposits, extend mortgage and real estate finance and invest in high-grade securities. Included in this industry are commercial banks, foreign banks, savings and loan associations, credit unions, thrifts and other savings banks.

Main Activities
The primary activities of this industry are:  Accepting demand and other deposits  Accepting time deposits  Investment in high-grade securities  Making commercial, industrial and consumer loans  Making mortgage and real estate loans The major products and services in this industry are:  Consumer deposits  Commercial deposits  Secured consumer loans  Secured business loans  Other non-interest income  Other loans  Other deposits

Similar Industries
J5521-GL - Global Investment Banking & Brokerage Establishments in this industry engage in underwriting, originating and maintaining markets for issues of securities.

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Global Commercial Banks

June 2012

3

Additional Resources
For additional information on this industry: www.imf.org International Monetary Fund www.fdic.gov Federal Deposit Insurance Corporation www.thecityuk.com TheCityUK www.federalreserve.gov US Federal Reserve

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Global Commercial Banks

June 2012

4

Industry Performance
Executive Summary
Banks perform a vital role within the markets they operate in, providing businesses, consumers and governments with access to financial products and services. They ensure the sustainability of the financial system by bringing together lenders and borrowers, which allows for the flow of funds. The collapse of the US subprime mortgage market and consequential global recession shook the world's financial system and threatened to destroy the core foundations that the financial system relies on to function. Throughout the world, banks suffered unprecedented losses as their loan loss provisions skyrocketed due to their borrowers becoming unable to repay debt obligations. Coupled with this, banks wrote off billions of dollars worth of assets, as values depreciated, during a time when the cost of funding rose sharply due to credit availability disappearing. As a result, over the five years to 2012, the Global Commercial Banking industry is projected to decline at an annualized 1.2% to $5.14 trillion. In 2012, marred by persistent uncertainty surrounding the eurozone economy and slightly slower economic growth in China. Consequently, industry revenue is forecast to grow by a subdued 5.3% in 2012. Looking ahead, the industry is set to fare well albeit at a slower rate compared with pre-crisis period. Banks operating in developed economies are expected to perform better as deferred business and capital expenditure moves forward. Banks in emerging markets held up well during the crisis and opportunities exist for large global banks operating in mature markets to expand into these regions and benefit from the growth that is expected to occur in the coming five years. Over the five years to 2017, industry revenue is expected to increase 3.8% annually to $6.18 trillion.

Key External Drivers
The key sensitivities affecting the performance of the Global Commercial Banks industry include: Economic Indicators - Investor Confidence Investor confidence relates to consumers' and businesses' expectations regarding the opportunities that exist in the market place to yield significant returns from their investment activities. If investors believe that investments exist which will yield the required rate of return, given their investment horizon and the risks inherent, then they will seek finance to make those investments. Thus, as their confidence improves, the amount of finance they demand rises which translates into more lending for the banks from which they yield interest income and fee and commission income. Industrial Production Index The Industrial Production Index (IPI) measures the pulse of economic activity within its component sectors, which make up a sizeable share of the total US GDP. Therefore, the index is closely followed as measure of total business activity and overall economic health. This driver is expected to increase in 2011, but is a threat to the industry as it will not increase at the same rate as 2010. Interest Rates - Bonds Effectively, interest rates represent the cost of money. Therefore, as interest rates rise, consumers' and businesses' demand for borrowing falls, as it becomes relatively more expensive to attain funding. However, when interest rates are high, the loans that are issued attract more interest income. So, although their volume of loans issued falls, the amount of revenue generated does not fall necessarily as it depends on the change in interest rates, the magnitude of the fall in demand and the amount of revenue that their outstanding loans accumulate. Stock Market Performance - Key Indices The performance of equity markets affects both the demand for bank lending and the quality of banks' lending portfolios. A positive development in the stock market will generally result in increased lending

the quality of lending portfolios and the volume of financial transactions. with rising asset prices. banks neglected their risk management practices. The collapse of Bear Stearns in March 2008. The most hurt were those banks heavily involved in the purchase. reflecting higher corporate profits. There have been three distinct phases over the past five years. From crisis to crisis Over 2008. repackaging and onselling of subprime loans. In September 2008. Good times The collapse of the US subprime mortgage market in mid-2007 put a sudden end to what had been a prosperous period for banks around the world. This was exemplified in the United States more so than anywhere else. This loss of confidence in the banking system grew as the size and number of banks announcing losses increased.WWW. The collapse of the US subprime mortgage market came about as loans were issued to individuals who.3%. Allowing this to happen was a relaxation of lending standards by the banks as they faced more competition from other lending institutions. ultimately it was the financial institutions. increased economic activity. Rising stock prices will also impact on the quality of the lending portfolio because borrowers have an increased ability to meet repayments. A string of financial institutions faced collapse. This driver is expected to increase in 2011. i.IBISWORLD. Industry revenue is expected to grow at a subdued rate of 5.14 trillion. As much as the borrowers themselves were to blame. Second. in retrospect. Banks announcing quarterly losses over the first half of 2008 grew to include not only investment banks but also many of the larger banks that had purchased these debt products. Global stock markets continued to climb.e. Lehman Brothers announced its bankruptcy. GDP growth. First in 2007. Governments in .COM Global Commercial Banks June 2012 5 due to the wealth effect of rising share prices . a fall in share prices will have a negative impact on borrowers' ability to service debt. was induced by large write-downs and a loss of market confidence. should never have been able to borrow as much funds as they did. the industry reached the pinnacle of its growth. the combined result saw the demand for loans peaking as businesses and households went on a debt binge. Total Value of Construction Put in Place The performance of property markets affects the demand for bank lending products and the quality of the banks' lending portfolio. In the lead up to the crisis. that caused their own demise having become highly leveraged and chasing debt-fuelled returns. In the process. Meanwhile. which is important because mortgages make up a large portion of banks' lending portfolios. much of the growth experienced occurred because of growing fault lines that ran throughout the global financial system.2% annually to $5. which led to a complete loss of confidence in the global financial system. However. like the banks. representing an opportunity for the industry. Lastly. persistent uncertainty in the eurozone is forecast to impede growth in 2012.investors feel wealthier and may therefore increase their demand for credit. a firm heavily involved in the securitization of mortgages. This driver is expected to increase in 2011. Consequently. real estate values boomed. bank write-downs continued to mount. tends to result to an increase in global banking revenue. World GDP Economic activity and interest rates have an influence on the level of savings. Current Performance Over the five years to 2012. revenue in the Global Commercial Banks industry has decreased 1. driving up household wealth. The number of housing starts is an indicator of the overall performance of the residential property sector. an emergence of an economic recovery in many parts of the world over the course of 2010 and 2011 facilitates a slow return on the path to prosperity. This risk is often accentuated by the fact that the demand for credit tends to rise with rising asset prices. demand for credit. As a result. Conversely. a sharp downturn in the global economy due to the subprime and housing crisis in the United States. resulting in increased risk for banks. Combined with low interest rates. banks operated in an economic environment of strong growth.

In the first three quarters of 2009. US banks set aside more than $173. loan loss provisions grew in dollar value and as a percentage of total revenue. Of this. thus. while many others battled recession. Moreover. Stock markets around the globe plunged and entire economies faced downturn as a result. mainly banks. During the same period. the effects spread and a broader range of assets depreciated in value.1 trillion. this brings total expected asset write-downs to $2.3 billion for loan loss provisions. Approximately 10 financial institutions. up from 1. Write-downs continued to be a problem for banks throughout 2009. $2. Together. with many being highly leveraged. Although the largest share of asset write-downs originated in the United States. Banks virtually stopped lending and the credit market froze. These included residential and commercial mortgages.WWW. were responsible for over half these losses.8 trillion for the global banking system. banks saw the rate of delinquencies. This made it difficult for borrowers to repay their debts and made it impossible for them to be issued with new debt. Role of government The attitude of governments in developed economies toward direct intervention in the banking system underwent an abrupt reversal following the bankruptcy of Lehman Brothers. With that. As a result. the write-downs in assets that banks recorded on their balance sheets were those associated with US subprime mortgages. continuing to eat directly into banks' profit margins. but they were brought under control somewhat in 2010. they charged off close to $124 billion in loans issued. banks incurred unprecedented loan loss provisions. . Asset write-downs The write-down of assets in the global banking system was huge. From the third quarter of 2007 to the end of 2008. Consequently. Loan losses The events that unfolded in the United States in mid-to-late 2007 caused many countries around the world to experience an economic downturn of some sort. signaling the end of securitization with investors pulling their money out of the market as quickly as possible. Moody's estimated that corporate default rates reached about 15%. As a result. they too found it difficult to pay down their debts. businesses saw demand drop. Given that they generally increase when economic growth stunts and unemployment rises. the global nature of the banking system resulted in banks across the globe having exposure to these assets.7% in April 2007. consumer and corporate debt and investments held on banks' balance sheets. equivalent to more than one-third of their total revenue. Initially. As time went on and conditions worsened.5 trillion is estimated to be attributable to banks around the globe for the period from 2007 through 2010. particularly because banks' lending standards tightened. the Global Commercial Banks industry is estimated to have experienced about $750 billion in write-downs. corporate default rates reached 8. Comparing this with the same period a year ago. Activity in financial markets shuddered to a halt. IBISWorld estimates loan loss provisions continued to rise into 2010. banks are expected to face a further $340 billion in asset write-downs through their exposure to emerging markets. The global financial crisis had arrived. as people no longer had the financial capacity to purchase as much as they were able to in the past. By the end of 2009. bankruptcies and charge-offs rise drastically as corporate and individual borrowers encountered financial difficulty and failed to service their debt obligations. corporate profits declined.3% in April 2009. Many people found themselves without a job as unemployment rose and continued to rise in many countries.COM Global Commercial Banks June 2012 6 developed countries hastily stepped in to support a suddenly fragile financial system. This is in addition to that set aside for loan loss provisions. pumping billions of dollars in stimulus packages just to keep it functioning. Over the course of 2008 and 2009. According to Moody's global speculative-grade. The International Monetary Fund (IMF) forecasts that potential write-downs on mature market credit for global market participants will reach $4.IBISWORLD. The liquidation of the banking conglomerate triggered mass hysteria in the world of finance and confidence plunged.

Then. One of the largest bank failures in history occurred in September 2008 when Washington Mutual was placed into receivership and sold to JP Morgan Chase. In October 2008. Investment banks Morgan Stanley and Goldman Sachs converted to a bank holding company structure. which was expected to restore confidence and stability. named the Financial Stability Plan. According to the IMF. particularly in Europe. The UK Government committed about $2. . Most governments had to inject billions of dollars into specific banks at risk of collapsing or facing bankruptcy due to the size of losses incurred and their exposures.IBISWORLD. Meanwhile. it nationalized Northern Rock PLC and Bradford & Bingley PLC. such as providing banks with access to funds and direct capital injections. were some of the ways that governments intervened. a Dutch-Belgian bank. It also provided guarantees against pools of assets that were vulnerable to large losses. In 2008. In many cases. which proposed a private-public partnership to purchase impaired bank assets. However. government guarantees on deposits and various forms of bank debt. the majority of mergers and acquisitions occurred out of necessity. 2009 saw more strategic mergers and acquisitions take place as management looked to place their banks in a competitively advantageous position where they could stand to benefit from the changed operating environment. the various measures introduced by governments around the world to restore capital strength in their respective financial systems are estimated to have cost taxpayers a combined total of $8. The German Government took a 25% stake in the Commerzbank after it experienced losses following the acquisition of Dresdner Bank. The Swiss and Irish governments took yet a different approach.2 trillion to bolster the nation's banking system through various measures. their approaches to dealing with the problems associated with toxic assets have differed between countries. This includes the provision of liquidity facilities.COM Global Commercial Banks June 2012 7 the global banking system went into a downward spiral that forced governments to intervene in order to minimize losses and restore stability. the government increased its stake in the Royal Bank of Scotland to 70%. in January of 2009. Mergers and acquisitions The banking assets of the global banking system have been reshuffled and it is not over yet. which have now become part of the commercial banking system through mergers or acquisitions. Meanwhile. several European governments took a stake in Fortis NV. a similar trend occurred with the US Government having provided capital injections to nine of its largest banks over the course of 2008. the UK Government has guaranteed to limit the impact of further losses on banks. The primary concern of governments was to provide capital to banks under financial distress to allow them to recover. The largest deals to date include the takeover of Merrill Lynch by Bank of America. the most recent was announced in February 2009. Others are acquiring or merging with competing banks as they look for greater economies of scale to reduce costs and to increase the size of their retail deposits. as the Irish Government nationalized the Anglo Irish Bank. as in the cases of Citigroup and Bank of America. Beyond that. both of which received about $45 billion in assistance. placing assets considered at risk of being written-down into a separate asset management company.WWW. However. Banks in search of capital have sold parts of their business or have retreated from their overseas operations. asset purchase schemes and guarantees on bank debt issuances. and in the United Kingdom the merger of Lloyds TSB with HBOS. in the fight for survival. The US Government introduced a raft of packages to support the banking system. Much of this restructuring involved US investment banks. which allowed them to expand their retail banking operations and grow their retail deposit base. this involved governments taking an ownership stake in banks. the acquisition of Wachovia by Wells Fargo. the British Government partially nationalized the Royal Bank of Scotland and the newly merged HBOS-Lloyds TSB. Taxpayer funded initiatives. In the United States.9 trillion.

This caused industry enterprise numbers to decline 2.WWW. the occurrence of the global recession acted as a catalyst to this. .1% per year to 54.IBISWORLD. accelerating the process.COM Global Commercial Banks June 2012 8 Although the Global Commercial Banks industry was already undergoing consolidation. in the five years through 2012.674.

18 trillion. confidence in valuations. Deleveraging will continue until debt falls in line with managements' target bands where it is more sustainable and would allow the company to shield itself from any unexpected. prohibiting lending due to a lack of funds. As a result. as the global economy cannot afford to withstand another shock of this magnitude. Beyond that. This will allow for more accurate risk assessments to be conducted. which may act as a constraint.0%. The battle for retail deposits will intensify throughout the next five years as banks look to attract customer deposits by offering attractive rates on their deposit accounts and reducing fees charged. Many governments slid from having a current account surplus to a deficit. Banks are likely to increasingly offer . Banks already began to hoard capital and boost their capital reserves in response to the market's greater sensitivity to risk. securitization will return to prominence as investor confidence builds and participation rates increase.8% is expected in the five years through 2017. expected changes will aim to prevent future collapses. industry revenue is expected to increase 6.COM Global Commercial Banks June 2012 9 Industry Outlook Over the next five years. However. with banks looking to grow their networks and customer base in order to cover more of the market and attract a larger proportion of retail deposits. IBISWorld expects to see further consolidation occurring because of this. The range of services and products provided to customers is an important feature in attracting new customers and maximizing the value obtained from these customers. In the process. banks will rely less on securitization in accessing capital. It will also act as a good indicator to the company itself that its risk levels are too high. Annual revenue growth of 3. government bodies make up the greatest proportion of investors participating in securitization markets. In 2013. with revenue reaching $6. the Global Commercial Banks industry will experience moderate results. during the five years through 2016. IBISWorld expects drastic changes to occur in the landscape that banks will be operating in throughout the world. Availability of capital For the post-global recession business environment. while others moved from a small deficit. making for a far more complete and sustainable financial system. their capacity to do so in the future has reduced drastically.WWW.IBISWORLD. Although governments spent up big in order to bail out their domestic banks. methodologies and assumptions will improve. catastrophic events like those of the financial crisis. the size of the market are expected to be lower than previously. the lending growth rates of banks will be linked to growth in their retail deposits. Among the changes expected are regulatory enactments that will increase disclosure of information requirements and enhance transparency. the dollar value of assets securitized and. However. Currently. One of the major changes will be the reduction in the amount of capital that banks will have access to. which is expected to continue over the next couple of years. New banking structure The importance of retail deposits to commercial banks over the coming years will reshape the industry. Much of the consolidation activity that took place in Europe and the United States provided the opportunity for some large banks such as Wells Fargo and JP Morgan to increase their access to retail deposits and enlarge their branch networks. which will enable credit agencies and regulatory bodies to quickly identify companies with the potential of encountering financial distress. and protect their entire financial system and wider economy from collapsing. profit margins are expected to narrow due to stricter capital requirements and further regulation that will restrict the undertaking of risky activities. Thus. with retail deposits becoming fundamentally important. Over the coming five years. therefore. The catastrophe that the collapse of the US subprime mortgage market brought on effectively put securitization out of business. For this reason. deep into debt. causing demand for loans to exceed supply. Regulatory changes also necessitated this. banks are going through deleveraging process.

particularly those operating in the mature markets of North America and Europe.IBISWORLD. Having financial markets that are in the growth stage of their life cycle means that capacity exists for the development of more complex products and services. Many of the BRIC (Brazil. The cross selling of products to clients allows banks to introduce clients to products that may have a higher profit margin than simple deposit accounts. they are less exposed to large losses and will continue to operate as usual in the coming five years. a bank issuing a mortgagee with a loan for the purchase of a home can also sell them house and contents insurance. global commercial banks are expected to resume their pre-crisis plans of expanding operations. While the growth in wealth management and cross selling of products is already apparent. They have been far less exposed to subprime-related assets. Russia.COM Global Commercial Banks June 2012 10 their customers a range of banking and wealth management services and products. It also allows banks to gain economies of scale on the high fixed cost of an extensive branch network. those that manage to expand into these markets successfully and take ownership of a significant share of the market will be able to outperform their domestic peers. both interest related and non-interest related activities are expected to generate more revenue for banking enterprises.WWW. Regions of note Banks within many emerging economies escaped much of the damage metered out to banks in developed economies. it is expected to grow in importance over the coming years. Thus. Household savings ratios are higher and leveraging by businesses is lower. complimentary products at the one time. which will see the industry growing in these regions. With time. IBISWorld expects the potential of these markets to lure many back as soon as they regain the capital strength to do so. the chance to share in the growth that these markets are expected to undergo. large. banks in these markets will offer a wider array of products and services to the market. which will see them expand the range of sources that they derive revenue from. cross selling of products will become a major strategy for increasing sales volume as a single customer can be sold multiple. . Boding well for banks in the emerging economies is the strong economic growth forecast to occur in these economies in the five years ahead. Furthermore. India and China) banks already operate in regulatory environments that are relatively conservative. Tapping into these markets offers banks. For example. Due to the potential for growth within emerging markets. Consequently. Although these banks may need to adjust to declining asset values.

IBISWORLD.WWW.COM Global Commercial Banks June 2012 11 .

one of the most important determinants of their future growth is the level of economic growth. For banks. Over the next five years. which may constrain the growth of banks in developed economies in years to come. investment banking services have now entered the domain of commercial banks. This influences household disposable income. banks in developing economies are expected to grow at a faster rate than their US and European counterparts.2% over the ten-year period. Likewise. industry valued added is expected to increase 1. With the demise of the large stand-alone investment banks.WWW. Increasing consolidation has been underway for many years. There has also been increasing convergence as individual banks offer a wider range of services to consumers and business. It also drives business borrowing and investment. Life Cycle Stage  Life cycles vary across geographic regions  The number of banks is in decline  The industry is undergoing consolidation  The largest banks operate globally Banks in different regions of the globe are at different stages of their life cycle. with banks either conserving capital for domestic markets or selling overseas assets to raise capital. savings and spending. This compares to the Indian and Central Asian region's annualized growth of 10. Some of the effects of the financial crisis are expected to extend beyond the recovery of bank revenue and profits.IBISWORLD. This has been driven by the scarcity of capital.6%. They have great potential to expand the range of products and services on offer to both households and businesses. The current crisis has seen some US and European banks reduce the reach of their global operations. Over the 10 years to 2017. reflecting the large and mature financial systems in which they operate. A more lasting change is the introduction of greater regulation.5% annually. Over the ten years from 2006 through 2016. given the current dominance of the mature European and US banks. Emerging from the current crisis will be a few very large global financial institutions that offer a wide range of products and services across many countries. However. The global financial crisis has accelerated many of the trends already present in this mature industry. the part-nationalization of banks in the United States and Europe may act as a constraint on future growth. .3% annually compared to World GDP which is expected to increase 5. Banks in developed countries are at a mature stage of their life cycle. driven by technological development. Banks in some of the emerging economies are in the growth phase of their life cycle. the overall industry is considered to be in its mature phase.COM Global Commercial Banks June 2012 12 Industry Life Cycle This industry is in the mature stage of its life cycle. the North American region experienced an average annualized decline in industry value added of 2.

Global Consumers Not only are consumers demand linkages through loans. . they are a key supply linkage. but they also provide a significant funding source for banks through deposits.Global Consumers Consumers are the major demand linkage for banks. Key Selling Industries Z01 . Therefore. as they require various loans and product servicing.WWW.IBISWORLD.COM Global Commercial Banks June 2012 13 Products & Markets Supply Chain Key Buying Industries Z01 .

through client facing lending and asset and liability management activities. and regular and interest- . While this is the case. Deposits also generate various account fees such as non-sufficient fund fees. Deposits While the industry generates income from interest and non-interest bearing activities. Deposit products provide a relatively stable source of funding and liquidity for commercial banks.0% 6.0% Commercial banks across the world primarily earn revenue and profits by accepting deposits and lending funds from these deposits. Firms will earn interest revenue from investing deposits in earning assets.0% 15. It is therefore estimated that deposits account for about 60% of the industry's activities. commercial banks will also provide the services of deposit accounts. individual retirement accounts. but deposits constitute the bulk of the sector. certificates of deposits.0% 4. they are actually an expense for banks. The industry therefore provides both products and services. This represents a significant amount of time because they also service and manage these accounts. it is difficult to include them in this segmentation. as they sign up customers and create bank accounts. core retail deposits. as interest expenses are paid to depositors. they do constitute an important business activity.WWW. banks also invest deposits in various markets to generate capital gains. Although these deposits are the essential source of funds in order to generate income. time deposits. deposits constitute the core activities for a bank. The following discussion revolves around both the services (deposits) and products (loans) that the commercial banking industry undertakes. Banks provide various other servicing activities.0% 4. money market savings accounts.COM Global Commercial Banks June 2012 14 Products & Services Commercial deposits Consumer deposits Other deposits Other loans Other non-interest income Secured business loans Secured consumer loans 24. overdraft charges and account service fees. Interchange fees are volume-based and paid by merchants to have the debit transactions processed. they have been included through the time spent handling and managing. Rather than segmenting this industry by revenue (therefore excluding deposits). By offering various loans to consumers. The service component of the industry includes all the deposit accounts they provide. while debit cards generate interchange fees. it is an essential activity. The product component of the industry is where banks generate their income.IBISWORLD. Furthermore. As deposits do not generate revenue and are actually an expense. Deposits generate the bulk of their funds and they are able to charge higher premiums on the loans they make as opposed to these deposits they receive. When combining the two products and services.0% 28.0% 19. Nonetheless. Deposits will generally include traditional savings accounts. they are able to generate interest income. as they tend to service the majority of their loans. and through their importance to the industry. including savings deposits from small-time consumers to large deposits from corporate clients.

from mortgages to credit cards. Loans to financial businesses account for a smaller proportion of revenue compared to that of non-financial businesses. secured consumer loans account for about 19% of the industry's activities (but constitute a significantly greater share when representing revenue generation – as deposits are included in the segmentation). and revolves around secured business loans. charges and commissions. which will cover business banking clients. Servicing income includes ancillary income derived in connection with these activities. and include the interest earned on loans. motorcycle and recreational vehicle dealerships across the United States. Products include commercial and corporate bank loans and commitment facilities. Regarding business lending. where these mortgage products will have fixed or variable rates. However. Business lending is dominated by loans to non-financial businesses. Products also include indirect consumer loans. this includes a range of lending-related products and services offered to financial businesses and non-financial businesses. . and structures and buildings. These are primarily offered to customers through client relationship teams and various product partners that are associated with the commercial banks. Interest income is the main source of revenue for firms that provide these types of loans. and through sales account executives and sales force personnel who offer customers direct telephone and online access to products. with interest income being the main source of revenue.COM Global Commercial Banks June 2012 15 checking accounts. Non-interest income on the other hand is generally obtained from fees. hence their market share of 28% of the industry. Overall. These loans are typically short-term borrowed money loans. and large multinational corporate clients. In general. Firms will also serve customers through any partnerships they may have with various mortgage brokers. they once again constitute a significantly greater share when representing revenue generation as deposits are included in the segmentation. Servicing activities primarily include collecting cash for principal. interest and escrow payments from borrowers.while still retaining customer relationships. IBISWorld believes that these secured loans include loans for production equipment. The majority of lending within this industry relates to consumer lending. Mortgage products are typically available to customers through a commercial bank's retail network. fulfillment. marine. These secured business loans account for about 15% of the industry's activities. Income sources Banks generate income both from interest and non-interest earning activities. such as late fees. mortgage product offerings are for home purchasing and refinancing needs. warehouse machinery. with origination fees making up the remainder. such as vehicle loans and residential mortgages. at about 24% of the industry's activities.e. It is estimated that household savings contribute the majority of deposits. the second most significant deposit category is from corporate clients. which allow firms in the commercial banking industry to offer financing through automotive.WWW. The mortgage business includes the origination. it revolves around secured lending. middle market commercial clients. Real estate lending products are likely to be issued to public and private developers. geographic branch centers. Commercial banks will manage these mortgage portfolios through their balance sheets for asset and liability management purposes. as increasingly being observed. and accounting for and remitting principal and interest payments to investors and escrow payments to third parties. sale and servicing of first mortgage loan products. representing a mere 4% of industry activity. repackaged into products and then on-sold into the secondary mortgage market to investors (i. Other deposits are from governmental agencies and various other business sectors.IBISWORLD. or. home builders and commercial real estate firms. More specifically. collateralized debt obligations and securitization) . The interest earning activities are the core area of revenue generation. Meanwhile.

advisory. . Finally. securitization fees.WWW. these revenue streams account for about 6% of the industry's activities. financial planning. brokerage and underwriting fees. venture capital revenue. which includes the reported income from servicing real estate mortgages. and other unsecured interest income activities such as personal lines of credit. the other non-interest income activities for the commercial banking industry include servicing fees. real estate and other assets. Servicing fees are the major part of the other non-interest income category. In total. investment banking. insurance commission fees. and various other fees. credit cards and other financial assets held by the industry's customers.COM Global Commercial Banks June 2012 16 Other lending activities include home equity loans. net gains on sales of loans.IBISWORLD.

The demand for loans is determined by the real after-tax cost of debt relative to other sources of funding. accessibility of distribution networks and diversity of product/service offering to meet customers' needs. Moreover.IBISWORLD. From a business perspective. declining wages. With households going on a debt binge for much of this decade leading up to the global financial crisis. Since then. Traditionally. asset value depreciation and/or a fall in investor/business confidence.e. Loans/advances Loans are a form of debt financing. rising unemployment. the interest rate charged on a loan represents the cost of money to the borrower. Negatively affecting the demand for loans – although in a less direct way than an interest rate increase – include an economic downturn. any volatility in equity prices. non-traditional suppliers. All of these factors affect the ability of households and businesses to take out a loan and to service it in the subsequent period.COM Global Commercial Banks June 2012 17 Demand Determinants Deposits Affecting the demand for deposit facilities banks offer to their clients is the real after-tax investment return they generate. customers will compare alternative investment options and the returns they offer given the risks inherent. raising debt capital directly through financial markets through the issuance of commercial paper and corporate bonds. investments in deposit and savings accounts have been regarded as a relatively low risk investment when compared to stocks and real estate. as investors look to minimize risk and protect their wealth. Generally. the development of securitization markets around the world has seen corporate banking clients bypassing the banks. . resulting in many aiming to reduce their level of indebtedness.e. As such. falls in corporate profits or a slowdown in economic activity can affect investor confidence and increase the demand for deposits. demand has curtailed as more difficult economic conditions have caused consumer behavior to change. fees).WWW. and the general cost to consumers of maintaining accounts (i. When deciding to deposit funds with a bank. Other Other factors which influence the demand for banking products and services include competitiveness of banks in key market segments relative to other financial institutions. any increase in interest rates will translate into a fall in demand for debt financing because it becomes relatively more expensive to borrow. the demand for loans skyrocketed. people with a risk-averse attitude are more likely to demand such products. Thus. The trending behavior of borrowers has also emerged as a significant factor affecting the demand for loans. capital raising through equity issuance. and more commonly. i.

Small business.0% 35. they are then able to market various other products and services to them at minimal costs. Corporate clients require large forms of business lending. corporate and institutional clients Unlike the aforementioned market segment. but tend to be similar to other market . Generally. corporations and institutions Governmental clients Other 45. Loans will vary across regions and governmental departments. Consumer and retail customers provide a substantial amount of deposits for commercial banks. the sheer proportion of customer numbers makes this market segment significant.IBISWORLD. and other banking sectors within that specific company. Although these customers most often deal in relatively small transaction sizes. and they too deposit cash into commercial banking accounts.COM Global Commercial Banks June 2012 18 Major Markets Consumer and retail customers Small businesses.0% 15. banks may entice customers to branch out from their primary banking activities (deposits) into mortgage products. the ability to attract and retain these customers is considered essential. with the high degree of competition in the Global Commercial Banking industry. fund management services. small businesses. If a commercial bank has a satisfied base of retail customers. Although there may be fewer clients in this category. IBISWorld believes that this market segment accounts for 35% of the industry. corporate and institutional clients will deal in a much larger scale of transaction value. where account keeping fees and investments made on the deposits make these customers highly profitable. their dollar value of dealings is substantially larger. larger corporate and institutional clients will deal with commercial banks whose assets are greater than $1 billion. credit cards.WWW.0% 5. commercial real estate and agriculture loans. Furthermore. According to data from the Federal Deposit Insurance Corporation.0% Consumer and retail customers The consumer and retail customer market segment is expected to account for the largest part of a commercial bank's customer base. On the other hand. For example. commercial banking institutions with less than $1 billion in assets had a greater exposure to residential mortgages. Governmental clients Commercial banks in this industry provide loans to and accept deposits from government institutions. commercial banks with assets in excess of $1 billion had a greater exposure to commercial and industrial (C&I) and credit card loans.

The level of trade within the commercial banking industry is insignificant. Imports in this industry are low and steady. The Other category holds only a small market share. Liberalization and leveling of regulatory and legislative barriers across the globe has resulted in a lowering of entry barriers into foreign banking markets. retirement services. auto loans.WWW. and generally involves a once-off. personal loans. niche type of transactional service. International Trade Exports in this industry are low and steady.IBISWORLD. Activity by individual commercial banks outside their domestic market generally occurs through the establishment of subsidiaries domiciled in the foreign markets. Other Customers in the "Other" market segment demand a range of other products and services. and various other governmental-type loans. These customers can often be involved in student loan services. and other forms of real estate. .COM Global Commercial Banks June 2012 19 segments and can include various types of real estate lending. auto finance.

4 4. North America and North Asia.IBISWORLD.1 4.0 5. .0 Three regions dominate the Global Commercial Banks industry: Europe. The relative shares have started to even out as developing nations are advancing and as the globalization of the banking industry continues.4 4. the three regions' shares of global bank assets is expected to diminish.6 6. The geographical distribution of bank assets reflects both the degree of deregulation and the development in financial and capital markets.COM Global Commercial Banks June 2012 20 Business Locations Region Europe North America North Asia India & Central Asia Africa & Middle East South America South East Asia Oceania % 47.1 6. and as this trend continues.4 22. The following discussion outlines some of the features of the geographic spread of these three regions.WWW. The commercial banking industry still has a considerable way to go yet before becoming completely globalized.

charge offs and a considerable increase in the cost of funding. With economic conditions deteriorating and investor confidence plummeting.IBISWORLD. Being a relatively mature market. Africa and Middle East and North America. consumer and business confidence fell along with their wealth. as witnessed in China and India.1% of the industry's enterprises.6% of total industry revenue. in 2010. its significance has declined considerably over the last two years. estimated to be 16. having held a 55. Although remaining the most important region for this industry. In terms of assets. the total value of assets under the control of European banks has declined considerably.9%. the European region is also the most dominant having an estimated market share of 55. . IBISWorld analysis suggests that the reason for this is due to Europe's general integration and proximity of countries. Consequently. responsible for around 27% of the region's revenue. IBISWorld estimates that in 2011 it will account for 47. Germany. accounting for some 16. Europe is a much less significant region in the global context given its dominance with respect to total industry assets and revenue. As with revenue. regions around the world that have noticeably increased their market share of total industry revenue at the expense of Europe include India and Central Asia. Looking ahead. which resulted in European banks' loan portfolios deteriorating in value and size. The main contributing factor to this has been the financial distress many European banks have faced as a result of the global financial crisis which saw large increases in loan loss provisions.8% of total industry enterprises. Within this region. Many American banks have had to write off billions of dollars in assets. making it the second most significant region in the world. North America also accounts for a large portion of global banking assets. The subprime collapse and the global financial crisis that ensued have made matters worse. is becoming less dominant in terms of its share of global banking activity. whilst the economy wide impact these events have had resulting in far less revenue being generated as banking activity fizzled out. However. means that they have been more affected by the global financial crisis and/or that it is taking banks in that region longer to recover from the downturn. Coupled with this. asset values dipped sharply as observed through the decline in share market indices and deflated real estate prices. Combined with rising unemployment. North America The North American region generates an estimated 22. the majority of European countries have suffered an economic downturn is some shape or form which has seen demand for banking products and services fall from levels experienced in the years prior.1% market share of total industry revenue in 2008. within a mature and saturated market.8 this year.1%.6 trillion in 2008 to $62. the United States is of crucial importance being the global financial hub that it is. it is falling behind emerging markets where economic growth and the demand for banking products and services is booming.WWW. Of course.5% and France. the recovery is expected to be far more challenging for banks operating in the North American region than those in other parts of the world. the United States in particular. making it the third largest region globally. having had a far more profound and detrimental effect on banking activity within the North American region than any other part of the world. At the same time. housing 29. where the majority of the region's banking activities are conducted. many borrowers forfeited on loans issued. According to IBISWorld.COM Global Commercial Banks June 2012 21 Europe The European region is solely responsible for generating more than half of the industry's total revenue. which reduces the desire of potential entrants into the market place establish themselves in a highly competitive region. IBISWorld estimates that Europe is home to 14. falling from $67.4%. More and more the North American region. In regards to enterprise numbers. This has occurred on the back of depreciating asset values and through the contraction in the size of their loan books. with a share of around 11%. while demand for borrowing dropped. for the European region to lose ground to other regions around the world. countries within Europe that contribute significantly to the revenue generated include those of the United Kingdom.

IBISWorld analysis shows that although the region is experiencing strong growth overall. it accounts for the greatest percentage of industry enterprises.1% market share of total industry revenue. like those of Europe and North America.COM Global Commercial Banks June 2012 22 Therefore. Other main reasons why China has a high asset base are due to government control over foreign exchange flows. its significance in terms of revenue is comparably small. Creating the need for the existence of a large number of enterprises is the demand emanating from China's population of 1. Korea and Hong Kong. which is expected to increase slightly over the next five years. central bank intervention restrictions and the competitive nature of marketplace in which they operate. Despite the size of the market. A point to note is that. three of China's big-four state owned commercial banks have risen into the top 10 global banks in terms of assets under management. although the North Asian region is the largest in terms of enterprise numbers. Having said this. with the majority being small co-operative type businesses.3 billion people who are located throughout the country. Comprising of countries such as China. with the second largest asset base accounting for 18. the relative underdeveloped nature of the region's banking product and service offering impedes on its ability to generate substantial gains in revenue from a global perspective. China and the North Asian region also account for a large proportion of the industry's total assets having gone through a period of rapid growth over the last five years.WWW. Japan. are far better equipped to develop innovative ways to grow their revenue sources and retain their dominance in a global market place.IBISWORLD. as a percentage of total industry revenue. the North Asian region holds a 12. Looking ahead a further five years growth of a similar scale is expected which is expected to see the nation's banks grow their asset base and become even bigger. . North Asia Based purely on geographic size. urbanized and remote regions. estimated to be around 40%. the United States will continue to be a focal point of global banking activity from a long-term perspective and any losses in overall market share are expected to be minimal. This is because more mature economies. in both. On the back of this growth. increasing the regions significance in terms of assets owned. Nevertheless. the North Asian region is the largest in the world.4% of the industry's total. its accountability. with the region becoming less significant. is unlikely to grow at the same pace. it is expected that further ground will be lost. To effectively capture the market banking enterprises of all sizes operate throughout China.

which are a key driver of profitability. Two organizations come to mind. and proper application of. HBOS and Lloyds. in particular. reducing costs and the reliance on branch networks. risk management and distribution channels. but this is not expected to expand to moderate levels for many years. Thus.IBISWORLD. i.COM Global Commercial Banks June 2012 23 Competitive Landscape Market Share Concentration Industry concentration is low. the level of concentration will increase.8% of total industry revenue. the ability to generate revenue from non-interest related activities is becoming paramount to banks' success. In given time. On the other hand. emerging markets such as China and India. with the four largest players accounting for about 8. Therefore. The large industry players will continue to seek to enter untapped markets.WWW. however. however. Economies of scale In an increasingly competitive market. Thus. Citigroup once held the top position within this market. This will ultimately create a significantly player within the industry. non-core banking activities to other entities that have operating efficiencies in those areas allows banks to reduce the costs associated with those activities and helps improve profit margins. banks face pressure to reduce per unit costs. Willingness to outsource when appropriate Outsourcing specific. banks must employ a rigorous and conservative risk management policy that instills confidence in their customers that the bank is financially strong. Access to the latest available and most efficient technology and techniques Success depends on prudent investment in. the thousands of other industry players make them appear to have a relatively small status. customer information systems. achieving efficiencies and cost reductions through economies of scale has never been more important. the credit crisis has seen the merger between two of the five biggest British banks. and its market share has declined in the two years prior to 2010.e. Ability to raise revenue from additional sources Increasingly. they have since fallen and have now started on their long journey to recovery. Superior financial management and debt management A bank's management of its interest rate and other operational risks is crucial to its survival. Technology allows banks to . thus once again affecting the industry's concentration level. super/insurance. The four largest industry players are truly global in their operations. the relative share of each industry player is minimized. as they have operations in every corner of the globe. both with opposing share growth. technology in retail banking. Commercial banking globally displays low concentration. Due to the sheer size of the industry and the revenue generated by thousands of industry players. Citigroup has been severely affected by the global financial crisis. Key Success Factors The key success factors in the Global Commercial Banks industry are: Membership of joint marketing/distribution operations Developing innovative alliances/joint ventures that help expand distribution channels and extend customer reach are crucial. banks need to look into expanding their product and service offering to nontraditional segments. The financial crisis has led to a number of major corporations to either lose market share or gain market share.

rather than being transaction processing hubs. accessibility and choice offered.COM Global Commercial Banks June 2012 24 deliver better services more efficiently. keeping in mind convenience. To achieve this. cross selling of products and providing information to customers. banks must offer their customers a product range and level of service that meets their needs and wants. flexibility.IBISWORLD.WWW. . Production of goods currently favored by the market A priority for banks is customer satisfaction. Control of distribution arrangements Banks are increasingly looking to change the role performed by branches toward becoming sales centers for complex products and services.

Average wages differ considerably from region to region. Wages Labor costs are the second most significant expense item for commercial banks. while the Indian and Central Asian region has the lowest average wage of $8.0% 2. global banking profit is expected to recover slightly from the horrid years of 2008 and 2009.8% 11. staff expenses will always be high for this industry. These are determined by the amount of liabilities.0% 2. trading liabilities and other borrowed money.319) regions. not just those in the developed world.COM Global Commercial Banks June 2012 25 Cost Structure Benchmarks Interest Expenses Wages Loan Loss Provisions Depreciation Rent General & Admin Fees & Commissions Advertising Other Profit 45.2% Interest expense The single largest cost faced by global commercial banks is interest expenses. In the United States. tellers. with the highest wages being attributable to the North American ($65. Profitability and loan loss provisions In 2012.WWW.968.5% 3. the economic conditions that have been witnessed throughout the globe have seen loan loss provisions skyrocketing. in particular. Commercial banks will employ numerous salespeople. The profitability of a commercial bank can be directly related to the quality of its employees and consumer satisfaction.0% 10. mainly. profit of. federal funds purchased. and competition in lending markets. type and maturity of the liabilities. loan loss provisions account for more . market interest rate conditions. affecting all banks.5% 8. The most significant item comprising interest expenses comes from domestic office deposits. With many banks having written of billions of dollars worth of assets since the last quarter of 2007. and customer service personnel across their network of branch offices. estimated to account for around 10.IBISWORLD.2%. Although expected to be well below where it stood prior to the crisis.9% 3.0% 1.1% 12. at 11. and subordinated notes and debentures making up the remainder of interest expenses banking enterprises incur. it will climb back to double digits. as a result.508) and Oceania ($57. US and European banks tumbled. with foreign office deposits.5% of industry revenue in 2012. Beyond this.

including professional fees and commissions. IBISWorld believes that these costs have also escalated. IBISWorld expects that rent costs account for 3. Having a presence across the industry through branches helps reach customers. Establishment numbers in these regions are high. although the number of enterprises is in decline (primarily as a result of acquisitions and industry exits).0% of industry revenue. which adds to rent costs. data processing. Rent A key to success in attaining and retaining banking customers is to have an easily accessible branch. utility expenses. IBISWorld expects that loan loss provisions will continue to be decline in 2012. As competition has intensified in this industry. This is particularly true within emerging economies where the use of internet banking is reduced. . Other There are various other expenses related to this industry. advertising.IBISWORLD.COM Global Commercial Banks June 2012 26 than 30% of total banking revenue.WWW. and telecommunication fees. depreciation. Banks are ever expanding their presence across the globe.

Firms in this industry will also compete against banks and thrifts owned by non-regulated diversified corporations and other entities which offer financial services through alternative delivery channels. reputation and price are also methods on which firms compete in this industry. despite the large decline in the number of commercial banks and the explosion in the number of ATM's. such as the internet. as banks position to be less reliant on retail deposits. technology.IBISWORLD. the lines of activity and markets served by this industry involve competition with banks. growth in the number of banking offices has continued. and customer convenience. The basis of competition centers on various factors. credit unions. These include customer service. The importance of such a distribution network is further highlighted by the observation that. Greater regulation may manifest itself in the form of greater constraint on the activities in which particular banks can engage. such as bank branches. A factor that may lead to lower competition is the increased regulatory regime expected over the next few years. Customers' ease of access to banks' services is an important aspect of a banks' competitiveness.WWW. Transaction execution. interest rates on loans and deposits. government agencies. thrifts. EFTPOS. innovation.COM Global Commercial Banks June 2012 27 Basis of Competition Competition is medium and increasing. lending limits. quality and range of products and services. and other non-bank organizations offering financial services. and restrictions on the entry and/or activities of foreign banks in domestic markets. state and regional markets are very important to banking organizations. . ATM's. co-operatives. mortgage brokers. which highlights the importance of an accessible network of distribution channels. The activities within the Global Commercial Banks industry are very competitive and vary across different regions. Generally. Competition for retail deposits is likely to increase. such as locations of offices. telephone and internet banking. Relatively modest concentration levels indicate that local. in gaining a competitive advantage.

or to acquire all or parts of assets of a commercial bank in a foreign jurisdiction. the corporation or a similar organization has to receive prior approval of the central bank and/or other regulatory bodies. Businesses tend to be very large and have strong market capitalization. and generate any decent market share.COM Global Commercial Banks June 2012 28 Barriers to Entry Barriers to entry are high and decreasing. Banks can also be restricted in their range of activities. in acquisitions of other banks and in interstate banking activities. This makes it difficult for new entrants to make an impact. Barriers to Entry checklist Industry Competition Industry Concentration Life Cycle Stage Capital Intensity Technology Change Regulation and Policy Industry Assistance Level/Impact Medium Low Mature High Medium Heavy Medium SOURCE: IBISWORLD In order to operate as a commercial bank in domestic banking markets. both bank and non-bank. commercial banks are subject to capital and operational requirements based on risk and leverage.IBISWORLD. In order to operate in international banking markets. starting in the early 1980s. the corporation must obtain approval of the central bank and/or regulatory body of the particular international jurisdiction. These capital requirements have increased in light of Basel II. as well as organizations outside the financial services industries. has led to increased competition in the commercial banking industry.WWW. . Furthermore. Commercial banks face competition from other credit intermediaries. The relaxation of global financial markets. and the global financial crisis will see greater capital requirements for banking organizations.

Banks are also involved in cross-border lending. with cross-border lending falling at an even faster rate than overall lending. . There have been some cross border purchases such as the purchase of some Lehman Brothers operations by Barclays.WWW. European banks are also withdrawing from emerging markets in Eastern Europe. According to IMF.COM Global Commercial Banks June 2012 29 Industry Globalization The level of globalization is low and increasing. Banking is increasingly becoming global in nature. In some cases. While the last decade saw banks extend their global reach more so than ever.IBISWORLD. with another 12% of assets coming from the rest of Europe. the proportion of cross-border assets in banks' total assets fell over the recessionary years of 2008 and 2009. around 64% of their portfolio assets are UK assets. it added to banks' woes. outlined in the new Basel II capital accord implies that very little adjustment to a bank's operational and capital standards is required in order to enter banking markets of participating countries. Increased regulation of the banking system globally may make it harder in some cases for foreign banks to purchase domestic banks in the future. Some global banks have sold or reduced their stakes in the large Chinese banks. For UK banks. Around 87% of the assets of US banks are US assets. This withdrawal has been driven by the need to raise capital or conserve capital for domestic markets where serious financial distress has been experienced because of the global financial crisis. geographical diversification did not provide the spreading of risk that it might have achieved in other times. The deregulation of financial markets in countries across the globe and the adoption of more uniform regulation lowered barriers to entry of foreign banks into new markets. Such international alignment of financial market regulation and capital requirements opens up banking markets for increased international competition and consolidation. Many large global banks have a presence in hundreds of countries across the globe. International capital standards. Globalization of banking is currently making somewhat of a retreat.

In October 2008. the Federal Reserve notified Bank of America that it would need to increase its Tier 1 common capital by $33.6% (2012) Bank of America Corporation Market Share: 2.700 ATMs. The government will take responsibility for the next $10 billion in losses. and global wealth and investment management. Bank of America (BoA) is the largest commercial bank in the United States.0% stake in Bank of America. Bank of America operates through three business segments: global consumer and small business banking. Bank of America had 59 million consumer and small business relationships with more than 6.6% (2012) 90. Under the terms of an agreement with the government. to become its largest shareholder.7% (2012) 1. The additional funds were required in light of the bank's rising consumer loan losses and unexpectedly large fourth-quarter write-downs from its Merrill Lynch acquisition. In 2011. Bank of America received a $25 billion capital injection from the US Government as part of its capital purchase program. The bank has about 243. and 90% of any losses after this. Subprime In May 2009. Bank of America provides a diversified range of financial services and products.1% (2012) 2.000 employees. HSBC Holdings plc Citigroup Inc.9% (2012) 1. In January 2009. global corporate and investment banking.1% (2012) 1. Industrial and Commercial Bank of China Limited Other Market Share 2.9 billion. the government has taken about a 6. Through its banking subsidiaries and various non-banking subsidiaries. As of December 2010. as part of its stress test. The company restructured its business operations in 2009 following the acquisition of investment bank Merrill Lynch. Bank of America is responsible for the first $10 billion of future losses on a pool of $118 billion in illiquid assets.100 retail banking offices and nearly 18.WWW. Bank of America also agreed to cut its dividend payments and put restrictions on executive pay. the government provided Bank of America with an additional $20 billion. .COM Global Commercial Banks June 2012 30 Major Companies Major Player Bank of America Corporation JPMorgan Chase & Co.1% Headquartered in Charlotte. In return. North Carolina.IBISWORLD.

Bank of America Corporation .7%. Interest income for 2011 was 12.5 billion. The deal was initially valued at $4 billion. while the four other business segments are more relevant to other financial industries.9 -7. IBISWorld considers the retail financial services and commercial banking segments to have the most relevance to this industry.3% lower compared with the previous year. The acquisition made Bank of America the largest residential mortgage lender and servicer in the United States. In September of 2008. treasury and securities services. and asset management segments. Another major acquisition occurred in late 2007. This acquisition added around 16. Bank of America agreed to buy Merrill Lynch.WWW.6 SOURCE: ANNUAL REPORT JPMorgan Chase & Co. The firm's wholesale businesses comprise the investment bank.4 12.financial performance Year Revenue $ million Growth % change NPBT $ million Growth % change 2006 2007 2008 2009 2010 2011 72580 66833 72782 119643 134194 115074 26. The Bank of Manhattan merged with Chase National.COM Global Commercial Banks June 2012 31 Recent acquisitions and events Over the past five years. total bank revenue successfully grew at an annualized 9.2 -14.5 N/C -82. The JPMorgan Chase business structure has six main segments. . Financial performance Operating condition have remained poor despite the worst being over. named after Abraham Lincoln's secretary of treasury and architect of the national bank system. has its origin in the Manhattan Company. The merged company renamed itself Chase Manhattan and remained the largest US bank into the 1960s.9 8. Salomon Chase.1 billion. These factors translated into lower revenue for the year. investment management company. 2009. The acquisition finalized on January 1. in 1955. in a deal worth $29.1% JPMorgan Chase & Co. commercial banking. Market Share: 2. but finalized at about $2.000 financial advisors and a 50% economic ownership of the Blackrock Inc. The firm's consumer businesses comprise the retail financial services and card services segments. which was created in 1799 to bring water to New York City.8 -1.8 billion loss in mortgage banking income. due primarily to its previously mentioned acquisitions. Manhattan Company had a provision in its incorporation documents to provide banking services and was brought into competition with the Bank of New York as the Bank of Manhattan. Bank of America maintained an aggressive strategy of acquiring companies.IBISWORLD.9 64.2 N/A 20924 4428 4360 -1323 -230 N/C N/C -78. Over the five years to 2011. and in early 2008 agreed to buy the troubled company. The bank reported an $8. when Bank of America made a $2 billion investment in Countrywide Financial.

as well as being one of the largest student loan originators. Retail financial services provides consumer banking through the United State's fourth-largest branch network and third-largest ATM network. which encountered liquidity issues in the tough economic climate. JPMorgan Chase accepted a $25 billion capital investment by the US Treasury under TARP. it also acquired Washington Mutual.4 million general-purpose cards in circulation around the world in 2008 with a total amount outstanding of $183.300 branches in 17 states.8 49.6 4.3 billion. Bank One Corporation merged with JPMorgan Chase & Co. In 2008.1 trillion.000 jobs in an effort to save $2. an arrangement was made to repay the debt owed to the government. down 5. the company was deemed financially strong enough to do so after passing the government's stress test. JPMorgan generated $67.3 -5. JPMorgan Chase became a top-five mortgage originator and servicer.8% on the previous year. . Fees from investment banking fell.2 billion to complete the transaction.5% annually to $106. for which it initially offered $270 million. coupled with a network of 2. while lending and deposit related fees rose by 29% to $5. in October 2008. and holds strong market positions in home equity originating and non-captive originating of automobile loans. The majority of job losses occurred in the retail banking segment.WWW.1 -5. One of which was Bear Stearns.7 19886 22805 2773 16067 24859 26749 18111 N/C 14.3 15. By mid-2009. JPMorgan Chase & Co. Financial performance Over the five years to 2011. However.3 3. JP Morgan Chase made two significant acquisitions.. Beyond its acquisition activity. mortgage banking and auto finance segments. Later that year. It continued to trade under the name JPMorgan Chase & Co. The combined company amassed assets of $1. further negotiations led to the offer being raised to $10 a share.2 billion in the three years through 2007.financial performance Year Revenue $ million Growth % change NPBT $ million Growth % change 2006 2007 2008 2009 2010 2011 2011 61999 71372 67252 100434 102694 97234 106541 14.25 billion (net of interest expenses) in 2008.3 SOURCE: ANNUAL REPORT . company revenue increased 14. The transaction united the investment and commercial banking strength of JPMorgan Chase with Bank One's large consumer banking operations.8 479.7 7.IBISWORLD. The fall in total net revenue was due in large part to $10 billion of markdowns on mortgage related positions. Acquisitions In July 2004.3 2. Through this segment. Net interest income rose by 47% due mainly to a fall in interest expenses. eliminating an estimated 10. costing the company $1. JPMorgan Chase has since become one of the largest credit card banks with 119. equating to $2 per share.4 54.COM Global Commercial Banks June 2012 32 The retail financial services segment aims to help meet the financial needs of consumers and businesses through regional banking.7 -87.09 billion.5 billion.

The global banking and markets division provides customized financial solutions to clients worldwide. IBISWorld believes that this will be a key strategic direction for the company going forward. servicing approximately 130 million customers. collections and financing products). However. HSBC will also offer insurance protection. however. HSBC has about 10. Finally. company revenue increased 7. Following the subprime credit crisis. asset management. specialty advisory services and general banking services. HSBC's “other” division comprises the company's captive private equity funds. Specific to the United States. insurance and investment services. and credit cards. these segments provide consumer and commercial banking services. North and South America. As with most banks and financial service companies that operate globally.2% annually to $99. various mortgage and finance loans. finance and factoring. Asia-Pacific. while the consumer finance operations will begin to focus on card and consumer lending. It also has a small "other" segment. These clients tend to be larger. employee benefits programs and pension plans. and taxpayer financial services. the Middle East. which had a severe impact across the United States and Europe. HSBC lifted its direction towards emerging markets in Asia for stability and growth. Financial performance Over the five years to 2011. global banking and markets. personal financial services. HSBC also placed its US vehicle lending business in run-off. and wealth management services worldwide. Through HSBC's commercial banking segment.9% HSBC is one of the largest global banks. with operations throughout the United Kingdom and Europe. and Africa.2 billion. These include deposit accounts. strategic relationships with third-party private equity managers and other investments. the company aims to be the leading international business bank. account.WWW. This segment provides businesses and customers payments. Australia.IBISWORLD. Business segments HSBC operates across four distinct segments: commercial banking. The company's personal financial services segment provides customers with a vast range of basic banking products and services. the recent financial crisis affected HSBC. trade services (credit. debit and credit cards. investment banking. . local and international payments services.000 offices in 82 countries and territories. Most specific to the industry are the commercial banking and personal financial services segments. Collectively. overall the company has fared well. mortgage defaults plagued HSBC and the company ended up shutting down Decision One in 2007. securities underwriting and trading. The services provided by the private banking segment include investment services. credit cards. collections. insurance and leasing. Through this segment. which was the US-based wholesale subprime lending unit of HSBC Finance. Globally.COM Global Commercial Banks June 2012 33 HSBC Holdings plc Market Share: 1. and private banking. with continued success in its consolidated performance. leasing. global wealth solutions. liquidity management. private banking. such as governments and corporations.

COM Global Commercial Banks June 2012 34 HSBC Holdings plc .7 -24. Citigroup's predecessor. with its business segments reduced from five to two. In September 2008.8 0. The two new operating units are Citicorp and Citi Holdings.7% Citigroup. with Wachovia eventually acquired by Wells Fargo. Citigroup agreed not to pay common stock dividends in excess of $0. Citigroup formed when Citicorp merged into a newly formed.16 billion deal. Europe. It has relatively low-risk. Travelers Group Inc. Inc. the Middle East and Asia.3 -30. was founded in 1864 as the first US accident insurer. TRV bought investment bank Salomon Brothers and formed Salomon Smith Barney Holdings. wholly owned subsidiary of Travelers Group Inc. Citigroup also received $45 billion from the government in return for non-voting preferred stock. which is made up of brokerage and asset management. Subprime events Citigroup has been one of the banks most affected by the global financial crisis.IBISWORLD. (TRV). mortgage loans.1 -11. . Following the effectiveness of the merger.9 -66. and Citi Private Bank and holds the group's core operations.000 jobs from its global operations. the US Government had agreed to protect $301 billion of loans and securities on the company's balance sheet. is a diversified holding company with businesses that provide a broad range of financial services. In November 2008.2 25.3 SOURCE: ANNUAL REPORT Citigroup Inc. and Travelers changed its name to Citigroup Inc. Market Share: 1. By November 2008. The acquisition would have created the third-largest branch network in the United States and given Citigroup a 10% share of total US deposits.2 21240 22709 7646 5298 4006 3112 N/C 6. It includes the retail bank business. in order to support investor confidence in the bank. The aim of this restructure was primarily to allow Citigroup to focus on its core banking operations. Africa. in October 1998. In 2008. In addition. the company announced that it was going to shed 52. Citi Holdings has about one-third of staff and includes the $310 billion in assets covered by a loss-sharing agreement with the government. This plan fell through. Citigroup operates across North America. Latin American.01 per share per quarter for three years beginning in 2009. Citigroup announced plans to acquire Wachovia Bank in a $2.financial performance Year Revenue $ million Growth % change NPBT $ million Growth % change 2006 2007 2008 2009 2010 2011 70070 87601 88571 78631 98918 99152 13.6 25 1. that subsidiary changed its name to Citicorp. consumer finance. and a special asset pool. high return assets. Citi restructured. and private label credit cards.4 -22.WWW. corporate and investment bank. Citicorp encompasses the group's global business and consumer banking operations. In 1997. The other unit is Citi Holdings.

the Abu Dhabi Investment Authority – a Middle Eastern sovereign fund – purchased a 4. the bank is highly profitable compared with its peers. the bank has expanded rapidly.9% stake in Citigroup for $7. a wholly state-owned company that was incorporated in 2003. ICBC's revenue grew at an annualized rate of 21.5 billion.COM Global Commercial Banks June 2012 35 In 2008.1 billion pales in comparison with ICBC's $42. who was one of its initial strategic investors prior to the IPO in 2007. due to the nature of their dealings and their focus on European and North American markets. Citigroup Inc. In November 2007. The bank maintains close ties with Goldman Sachs.3 N/C -85.227 domestic branches. The 55% growth in 2007 compensated for the slow year in 2009. The banks operating profit decline was more dramatic. 203 overseas branches and over 1. 1984. This loss was attributed to mark-to-market losses of $32 billion and an increase in loan loss reserves.6 7. In 2006 the bank listed simultaneously on Hong Kong Stock Exchange and Shanghai Stock Exchange.6% Although ICBC was only founded on January 1. Despite this. HSBC's net profit before tax of $3.9 SOURCE: ANNUAL REPORT Industrial and Commercial Bank of China Limited Market Share:1.3 N/C 10. Financial performance Over the five years to 2011.8 -10.0% per year. Over the five years through 2011. However. .2 55.500 correspondent banks.9% annually to $78. Although Citigroup's revenue rebounded strongly in 2010.5 28489 776 -53055 -7799 13184 14624 N/C -97.WWW. Based on NPBT margins. the bank's net revenue declined in 2011 due to lower loan balances and lower interest earning assets in the bank's portfolio. the bank's largest shareholder is Huijin. the bank's operating profit substantially exceeds the largest bank based on earnings. HSBC.financial performance Year Revenue $ million Growth % change NPBT $ million Growth % change 2006 2007 2008 2009 2010 2011 86327 77300 51599 80285 86601 78353 7.5 -33. due to the reported NPBT loss of $53. True to its reputation. Although most banks were severely affected by the financial crisis. the bank had 16. primarily because its operating expenses are substantially lower. company revenue increased at an annualized rate of 1. when revenue was hit by the slowing world economy. The bank's .3 billion.1 billion in 2008 due to the financial crisis. the company announced that it was scaling back its US mortgage business after it suffered nearly $10 billion worth of fourth-quarter losses in 2007 due to mortgages and the subprime crisis.9 -9.5 billion in 2011.0% a year. it is the world's largest bank by profit and market capitalization. ICBC survived relatively unscathed. Within the decade. As of 2010.IBISWORLD. averaging 5. the bank successfully recorded improvements in its NPBT margins due to substantially lower provisions for loan losses.

The 10 other banks estimated to be significant players in the industry are UBS (based in Switzerland).3 33.1 N/C 7.5 24250.IBISWORLD.2 19658.COM Global Commercial Banks June 2012 36 focus on China helped the bank navigate through the downturn. and Societe Generale (all based in France). Industrial and Commercial Bank of China .03 44723. ICBC's largest market is that surrounding the Yangtze River Delta. HBOS-Lloyds TSB and the Royal Bank of Scotland Group (both based in United Kingdom).21 45440. Consequently.0% while most of the developed economies were going through a recession.4 57912. profit.5 74267. However. Deutsche Bank (based in Germany).financial performance Year Revenue Growth % change NPBT Growth % change 2007 2008 2009 2010 2011 36260. Credit Agricole.9 21036. .3 SOURCE: ANNUAL REPORT Other Players Other than the four major banks listed.0 15. All of these banks hold strong market positions in their respective countries and a solid global presence. IBISWorld has identified a further 10 banks of considerable size with strong global presence within the industry. assets.4 31. ING Group (based in the Netherlands). Their revenue.WWW. economic indicators suggest that China may be slowing down over the next year. the bank's personal banking segment is expected to play a greater role in driving growth for the bank in the next year. China continued to record GDP growth above 9.6 42477. Its corporate banking business contributes an estimated 53.5 32354.8 n/c 25. but they are strong global commercial banking operations that are relevant to the industry. and market capitalization may all differ. BNP Paribas.1% of bank's total revenue.6 29.3 -1.5 28. Mitsubishi UFJ Financial Group (based in Japan). where the major cities of Shanghai and Nanjing are located.

Technology has significantly changed the commercial banking industry by lowering the cost of storing. Furthermore. . This is because the implementation of technology in banking systems in developing countries is not as advanced. low-cost distribution channels in favor of more costly alternatives. technological developments have vastly altered the banking landscape for many of the emerging economies. as banks look to cut costs by making their operations more streamlined and technology based. Technology is also being leveraged to increasingly expand banking outreach aiming to target many of the rural areas associated with emerging economies. and the use of electronic payments (both retail and cardbased). Such investment costs will include keeping up with technology improvements. increasing ATM presence.  Substantial investments in branch and technology infrastructure  Human resources form the basis of this industry The industry is characterized by establishments providing financial services on a state level to a national level.WWW. Industry participants have invested substantially in a branch network as a means of distributing their services. Furthermore. Technology will continue to contribute to significant changes in retail payments systems and financial services distribution channels. In more mature industries. Such technological developments include computerization (which is considered the starting point of all technological initiatives). It is expected that these developments will encourage customers to adapt to these new. Further and continuous investments in technology and communication infrastructure are necessary to remain competitive. maintaining a strong branch network and distribution status. restricted internal Intranets and increasingly secure transmission of information is expected to accelerate the use of network use as a means to reduce costs. where there is a high degree of labor intensity with numerous employees serving individual bank branches.IBISWORLD. there have been significant improvements in processes and procedures leading to higher productivity. and aims to increase efficiencies with internet and other electronic means. ATM installation. and reduction in the transaction cost. a physical presence is required in the form of branches and ATMs. rapid product development through alternative delivery channels.COM Global Commercial Banks June 2012 37 Operating Conditions Capital Intensity The level of capital intensity is high. This tends to be the opposite for developing countries. aided by the development of direct distribution channels and technological improvements. there have also been efforts to reduce labor intensity. there have been efforts to reduce capital intensity by selling property and closing branches. The increasing need for technologic empowerment and continuous improvement of equipment. processing and accessing data through the growth of low-cost communications equipment. In order to compete effectively. Access to the Internet. In India for example. Technology & Systems The level of technology change is medium. new pricing structures and distribution channels have emerged. bank risk management and data assessment.

BIS' customers constitute central banks and international organizations. the pursuit of global monetary and financial stability in two main ways. private individuals or corporate entities. investor confidence. Several high-profile banking collapses.COM Global Commercial Banks June 2012 38 Revenue Volatility Industry revenue volatility is medium. issued by the Committee in 1988. The Basel Capital Accord. and a revision of the Capital Accord. .WWW. However. known as Basel II. the bank supports experts from national central banks and supervisory agencies in proposing measures and developing standards aimed at strengthening the international financial and banking supervision. the availability of funds. In addition to the Basel Committee on Banking Supervision. The global nature of this industry means that the largest banks can extend their operations into those regions where prospects are brightest. where asset write-downs have been greater. The industry is expected to return to its more usual state of moderate volatility over the next five years. The growth of international financial markets and cross-border money flows in the 1970s highlighted the lack of efficient banking supervision on an international level. National banking supervisory authorities regulated domestic banks and the domestic activities of international banks. While the affects of the financial crisis have been most pronounced for banks in developed countries. Volatility has been acerbated by the arrival of both a financial crisis and global recession. and continues to assist. introduced a credit risk measurement framework for internationally active banks. The current financial crisis has seen a period of unusual volatility. BIS. banks in other regions have felt the impact of rising loan losses associated with the downturn in economic conditions. the Committee on the Global Financial System. is the world's oldest international financial institution. international activities of these banks were not always closely supervised. and. Regulation & Policy The level of regulation is heavy and the trend is increasing. or provide financial services to. Measures planned by governments around the world in regulating financial institutions of systemic importance to the financial system will contribute to a more stable future environment. Bank for International Settlements (BIS) The Bank for International Settlements (BIS) is an international organization that fosters international monetary and financial cooperation and serves as a bank for central banks. established in 1930. The growth and globalization of financial markets during the final decades of the twentieth century shaped the nature of central bank cooperation at the BIS as the bank assisted. the demand for borrowing. The global nature of this industry would normally act to reduce volatility. Most affected have been the US and European banks which dominate this industry. the bank provides emergency financial assistance in case of need. the Bankhaus Herstatt in Germany and the Franklin National Bank in the US. The BIS acts as a forum to promote discussion and policy analysis among central banks and within the international community. a prime counterparty for central banks in their financial transactions. The Accord became a globally accepted standard. is due to be implemented worldwide from end-2006. a center for economic and monetary research. There are many factors which affect revenue volatility. However. First. agent or trustee in connection with international financial operations.IBISWORLD. Second. and global share market performance. the bank does not accept deposits from. with the most important being the level of interest rates. Slower growth in some regions may be balanced by faster growth in others. prompted the central banks of the G10 nations to set up the Basel Committee on Banking Supervision.

Both the United States and the United Kingdom in particular are expected to increase regulation of their banking systems. A summit of G-20 leaders was held in November 2008 to discuss the crisis. assessing risk management practices and improving transparency. In cases where governments have taken an ownership stake in banks requiring capital.9 trillion of financing. the various measures introduced by governments including liquidity facilities. and the Markets Committee help promote monetary and financial stability.IBISWORLD. This included boosting bank capital requirements for some activities. and greater international cooperation and coordination of financial market regulators was identified. Industry Assistance The level of industry assistance is medium and the trend of industry assistance is steady.WWW. The need to improve regulation through more consistent national laws. Increased regulation Governments around the world are expected to increase the level of regulation of the banking system because of the global financial crisis. There are no specific tariffs for this industry. Governments around the world have been providing banks with access to funds and direct capital injections. According to the IMF. and introducing government guarantees on deposits and various forms of bank debt. . asset purchase schemes and guarantees for bank debt issuance have provided up to $8.COM Global Commercial Banks June 2012 39 the Committee on Payment and Settlement System. Some general measures to strengthen regulation of the banking sector were agreed upon. restrictions on executive remuneration and dividend payments have already been introduced.

6 5.148.3 1.4 108.7 593.447.1 -9.1 1.375 15.903 55.214.3 11.3 -2.957.349.521.984.8 0.839.9 3.498 14.8 8.9 -6.421.5 528.6 Total Assets ($ billion) 75.7 -0.7 9.6 -0.2 6.4 0.8 585.051.3 5.709.2 Employment (%) 2.0 -0.445.8 IVA 1.0 Annual Change Revenue (%) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 10.8 -1.880.860.2 1.6 1.139.543 15.8 6.0 4.5 1.635 60.643.3 4.577.881.1 9.723 14.504 62.3 0.9 1.8 0.994.102 54.7 1.0 4.1 126.044 14.1 3.779 820.129 66.594.7 5.186.178.172.475.434 839.683.3 13.3 Establishments Enterprises 952.6 529.180 827.070.117.082 54.186.2 6.103.592.COM Global Commercial Banks June 2012 40 Key Statistics Industry Data Revenue 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 3.8 2.391.1 1.0 3.245.2 0.5 11.2 3.4 -6.646 13.489.1 9.9 113.913 826.9 539.4 -0.317.4 0.9 4.125 15.0 146.687 13.2 2.6 5.417 15.151 72.8 0.354.3 0.6 1.007.1 -0.2 -0.403.710.790 15.270.937 809.5 1.3 2.8 535.2 -4.211.048.2 3.893 14.WWW.8 1.0 3.950 58.7 -0.698.462.1 5.6 5.545 811.9 -0.303 825.9 Establishments Enterprises (%) (%) 0.971.2 4.341.952.1 IVA (%) 11.1 2.6 2.712.241.4 0.8 7.514 Exports Imports Wages 466.4 136.2 2.798.449.937.7 1.7 -4.7 1.530.8 1.967.475.IBISWORLD.8 557.7 4.295 815.625.626 54.9 1.6 0.691 73.2 1.168.792.981.773.8 5.0 1.6 -16.362 828.3 -8.601.0 553.853.3 1.6 0.9 .381.6 484.455.5 119.9 581.214.8 6.8 -2.1 -5.812.214.365.9 87.698.7 4.2 3.3 6.330.6 94.703.8 5.1 139.923 959.8 4.2 0.846.4 Exports (%) N/C N/C N/C N/C N/C N/C N/C N/C N/C N/C N/C N/C N/C N/C Imports (%) N/C N/C N/C N/C N/C N/C N/C N/C N/C N/C N/C N/C N/C N/C Wages (%) 3.1 Assets (%) 14.9 0.266.161.1 2.4 4.1 1.1 1.7 611.581.229.279 55.799.5 544.458.233 Employment 13.478.181 13.0 143.6 521.486.2 1.2 1.7 4.473.5 7.489.958.2 1.238.6 1.932 14.2 6.928.0 13.958.4 -2.1 6.676.3 0.1 5.997.6 -9.5 2.910.711.439.675.141.3 -9.6 568.354.618.817 956.3 -14.710 14.405.691.707 53.676.199.160.410.233 53.9 115.040.889.077 865.0 4.018 821.816.4 5.2 99.3 1.3 0.3 -1.532.1 0.7 -4.412 55.674 54.2 0.3 132.256.816 818.7 112.

7 28.181.1 28. M&A Stands for mergers and acquisitions.7 380.7 349.557.2 42.COM Global Commercial Banks June 2012 41 Key Ratios IVA/revenue (%) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 31.0 0.2 11.8 356.0 0.0 10.2 317.1 388.9 36.5 Imports/ demand (%) 0.4 310.6 37. RETAIL DEPOSITS Sums of money deposited by a customer in a banking enterprise.0 0.6 Figures are inflation-adjusted 2012 dollars NOTE: UNLESS SPECIFIED.6 Employees per est.971.6 9.0 0.3 35.0 12.e.3 36.5 10.8 27.906.0 Exports/ revenue (%) N/C N/C N/C N/C N/C N/C N/C N/C N/C N/C N/C N/C N/C N/C N/C Revenue per employee ($'000) 274.0 9.7 27.7 11.1 27.0 0.623. 14 14 14 17 17 17 18 18 18 18 18 18 19 19 19 Average wage ($) 35. Jargon CDO Stands for collateralized debt obligations.9 343.3 40.7 9.1 Wages/ revenue (%) 13.4 391.2 32.5 326.7 25.320.2 36.0 372.0 0.260.636.2 11.8 32.300.1 30.1 28.2 11. AN ASTERISK (*) ASSOCIATED WITH A NUMBER IN A TABLE INDICATES AN IBISWORLD ESTIMATE AND REFERENCES TO DOLLARS ARE TO US DOLLARS.WWW.0 0.7 9. LOAN A type of debt where funds are extended to the borrower who is then obliged to repay the principal plus interest over the term of the loan.5 379.859.6 362.1 28.7 36.7 324. i.729.0 0.6 11.0 0.4 36.4 36.3 11.870. .8 39. Customers generally earn a rate of return. principal plus interest accrued over the term of the loan.073.3 24.0 0.7 35.0 0.0 0.7 25.IBISWORLD.611.7 11.3 37.7 27.1 37.2 295.0 0.324.0 0.

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