BUSINESS INSIGHTS

The Top 10 Global Retail Banks

Growth strategies and best practices of the leading players

Financial Services Management Report

Composition of household assets

CEE 3 versus Euro region

100%
90% Deposits
80%
70% 69% 44%
60%
50%
Insurance
40%
and pension 38%
30% funds
20% 21%
10% Mutual funds 18%
10%
0%
CEE3 EURO area

N.B.
CEE 3 includes Poland, Hungary and the Czech Republic.
Euro area is represented by the weighted average

Source: The Top 10 Global Retail Banks

“Central Eastern Europe offers better prospects in terms of

growth and profitability in retail banking than Western
Europe. Over the last three years, loans in the CEE region
have increased by 12%, while within the Euro region
growth was 4%...”

Identify and exploit new regional and product opportunities in global banking
using the best practice case studies, SWOT and financial analyses
and insight from industry experts contained in this report...
Business Intelligence for the Financial Services Industry

Business Insights’ portfolio of financial services management reports are designed to help you make well
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trying to drive your business forward, and appreciate the importance of accurate, up-to-date, incisive product,
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The strength of our financial services research and analysis is derived from access to unparalleled databases
and libraries of information and the use of proprietary analytic techniques. Business Insights reports are authored
by independent experts and contain findings garnered from dedicated primary research. Our authors’ leading
positions secure them access to interview key executives and to establish which issues will be of greatest strategic
significance for the industry.

Our financial services portfolio of reports can be used across a wide range of business functions to assess market
conditions and devise future strategies. The order form on the back of this brochure lists titles available within the
following categories: Banking, Finance, Insurance, Wealth Management, Investment and Strategy..

Examining the Key Issues

• EU enlargement. Less than a year after the accession of 10 Central

"Bank of America and Eastern European countries to the EU, ratings agency Fitch has
upgraded its ratings of 13 banks based there following the
provides a diversified
introduction of new sovereign ratings for EU accession markets.
range of banking and
• Mergers and Acquisitions. The trend is now for mergers involving
non-banking financial
larger institutions, which undoubtedly have a significant impact on
services and products. the shape of the global financial services industry, especially when
It serves 28 million they cross international borders.
customers, managing • Basel II will affect a number of banking sectors. Most banks expect
assets of $474,000 to increase unsecured retail loans as a result of Basel II and a
decline in corporate lending. It may force banks to restructure their
million. It also provides
core businesses and increase merger activity.
services to 25,000
• China joined the World Trade Organization in 2001 and has
midsize companies and become a promised land to many global financial services
2 million small companies, including banks, and other financial services providers.
businesses..." It is difficult to come across a global company who is not investing
or planning to expand, in China.
The Top 10 Global Retail Banks
Growth strategies and best practices of the leading players

Many banks experienced extensive losses in their portfolios as a result of

BNP Paribas financial ratios
the stock-market decline, especially banks with strong investment banking
arms and exposure to equity markets. These banks are now searching for
Financial Ratio 1999 2000 2001 2002 2003
more profitable markets to enter in order to recover losses caused by the
Net Interest
0.9 0.8 0.7 0.9 1.1
stock-market decline.
Margin

Cost To Income The Top 10 Global Retail Banks: Growth strategies and best
66 64 63 65 63
Ratio
practices of the leading players provides analysis of key growth trends
Return On Avg.
Equity (ROAE)
9 19 16 12 12 within the retail banking sector, as well as best practice profiles of the
largest global banks. These profiles examine key strengths, weaknesses,
opportunities and threats facing the world's largest banks, analyze their
Source: The Top 10 Global Retail Banks

strategies, performance and the products and services that have driven
“Net interest margin is a guide to the profitability of a
company's investments. The higher it is the better it is their growth. In addition this report examines the impact of recent
for the bank, and BNP Paribas ratio is twice that of an merger activity, regulatory changes and the growth of emerging markets.
average French bank, indicating strong profitability.
Cost to income has been much lower than the French
average, meaning that BNP Paribas is run efficiently Exploit the strategies top banks use to expand their businesses and
with strong financial performance...”
achieve higher profitability.
Source: The Top 10 Global Retail Banks: Growth
strategies and best practices of the leading players

The Answers to Your Questions

• What impact is the EU enlargement likely to have on global banking?

"Net interest margin
• Where are the best prospects for economic growth, both now and in
is a guide to the
the future?
profitability of a
• Which geographical and product markets show the best prospects?
company's
investments, and the • How are leading banks gaining access to wider customer bases?

higher it is the better • What motivates financial services companies to merge and acquire
it is for the bank, and other businesses?

BNP Paribas ratio • What problems are encountered by banks seeking growth and
twice that of average increased profitability, and how can they be overcome?
French banks, • What are the implications of Basel II to global retail banking?
indicating strong
profitability…"
This report will provide you with...

• Comprehensive research and analysis of the performance and

"China's economy is strategies of the world’s leading retail banks. This report contains
primary data from interviews with executives of global retail banks,
expected to grow by
central banks and banking authorities with analysis based on financial
7-7.5% this year, and data from Bank Austria, European Central Banks the Financial
according to the Times and European Banker.
International
Investment Bank, • Profiles of the 10 largest global retail banks, highlighting
examples of best practice, analyzing the strategies driving their
6% annually during the growth and indicating any potential problems they could face in the
coming two decades, short-term future.
to become the second
largest in the world • SWOT matrixes and financial ratio analyses of Citigroup, Fortis,
BNP Paribas, Credit Agricole, Deutsche Bank, Credit Suisse, Bank of
next to the United
America, HSBC, Royal Bank of Scotland, and Barclays Bank and key
States by 2030..." financial ratios for each including net interest margin, cost to income
ratio and return on equity.

The Value Proposition

Benefit from 144 pages of expert insight and analysis, enabling you to:
"Cost to income ratio • Understand the affects of the stock-market on global retail
for Deutsche Bank is banking and discover how the industry’s recovery is progressing.
higher than the • Target future growth markets more effectively with the help of
German average of 77, this reports analysis of top retail bank's strategies and best
practices.
indicating that the
company is not being • Identify the key drivers of mergers and acquisitions, the causes
of the recent slow down and the trends that may see it accelerate
operated efficiently, again in the future.
while return on equity
• Benchmark your performance against the most successful global
ratio for Deutsche banks, avoid their mistakes, replicate their successes and learn of
Bank is one of the the threats they face.
worst ratios for the • Save time, money and resources on researching the performance
company…" and best practice strategies of the key players in global retail
banking using this report.
Sample information from the report

Chapter 9: Best Practice Company Analysis - Royal Bank of Scotland

SWOT Analysis
Royal Bank of Scotland
Strengths SWOT Analysis

Successful acquisitions: the acquisition and relatively painless

Strengths
integration of NatWest had a positive impact on RBS growth, • Successful acquisitions, e.g. NatWest
• Brand strategy through different brands
ensuring it remains the fastest growing company in the industry, • Distribution channel strategy
• Various sources of income and
averaging growth of around 15% a year compared with 10% for its • Diversification
Weaknesses
• Potential problems with acquisitions, due
to new costs associated with integration
and management systems

closest competitor - HBOS. RBS has the ability to integrate

Opportunities Threats
acquisitions with a relative lack of disruption and it is a great • Emerging markets in Asia • High exposure to investment banking and
• New Central and Eastern European EU therefore negative performance in 2002
advantage for the group. members •Increasing competition and threats to the
• Focus on improvements in European banking industry from other companies
and US operations
Brand strategy: as opposed to some of its competitors (e.g. HSBC),
RBS operates a multi-brand strategy. The company operates under
numerous well-known brand names, which allows the company to
appeal to many different segments of the market. Source: The Top 10 Global Retail Banks

Distribution channel strategy: RBS is continuously improving the

distribution of its products. Its online and Internet-based access offers a combination of excellent growth prospects and its retail
direct business also saw growth of 27% in 2002 and 15% in 2003. Another example is Tesco Personal Finance, the UK's most
successful supermarket bank, with over four million customer accounts.

Various sources of income: RBS has many sources of income throughout the group, and this diversity within the group makes
the company more flexible and resistant to economic and environmental changes.

Weaknesses
Potential problems with acquisitions: RBS has been successful in its integration of acquisitions such as NatWest, however
these transactions also have negative aspects. New costs associated with integration and management systems can leave
the group more vulnerable to shifts in the market and the economy.

Opportunities
Emerging markets: since there is more investment demand in the United States, Japan and the rest of Asia, RBS should
concentrate on these markets, especially in view of low global interest rates.

Central and Eastern European new EU members: growth is picking up with exports and private consumption. Also, because
of their size, the new EU member states are a profitable investment target.

Focus on improvements in European and U.S. operations: RBS has increased its European operations with the purchase of
the European motor insurance business of AllState Corporation, which gave it access to the German and Italian markets. It
also strengthened its U.S. operations through the acquisition of the regional retail and commercial banking operations of
Pennsylvania-based Mellon Financial Corporation. Further acquisitions are planned in the near future to achieve further
aggressive growth in these markets.

Order this report today to find out more...

Table of Contents

EXECUTIVE SUMMARY • SWOT analysis of Fortis

• The global retail banking landscape in 2005 - Strengths
• Company analysis: Citigroup - Weaknesses
• Company analysis: Fortis - Opportunities
• Company analysis: Crédit Agricole - Threats
• Company analysis: HSBC • Analysis of Fortis in 2004
• Company analysis: Deutsche Bank
• Company analysis: BNP Paribas CHAPTER 5: COMPANY ANALYSIS: CRÉDIT AGRICOLE
• Company analysis: RBoS • Summary
• Company analysis: Barclays Bank • Crédit Agricole overview
• Company analysis: Credit Suisse • The Crédit Agricole timeline
• Company analysis: Bank of America • Financial analysis of Crédit Agricole
- Financial ratios for Crédit Agricole
CHAPTER 1: INTRODUCTION • SWOT analysis of Crédit Agricole
• Report structure - Strengths
- Assessing the major influencers in global banking - Weaknesses
- Introduction to the top 10 global banks - Opportunities
- Threats
CHAPTER 2: THE GLOBAL RETAIL BANKING • Analysis of Crédit Agricole in 2004
LANDSCAPE IN 2005
• Summary CHAPTER 6: COMPANY ANALYSIS: HSBC
• Introduction • Summary
• China • HSBC overview
• Central and Eastern Europe • The HSBC timeline
• Mergers and acquisitions in retail banking • Financial analysis of HSBC
- 2005: entering a new M&A era - Financial ratios for HSBC
- Global M&A in 2004 • SWOT analysis of HSBC
- Will we witness a new wave of M&A, both domestic - Strengths
and cross-border? - Weaknesses
• Basel II overview - Opportunities
- Threats
CHAPTER 3: COMPANY ANALYSIS: CITIBANK • Analysis of HSBC in 2004
• Summary
• Citibank overview CHAPTER 7: COMPANY ANALYSIS: DEUTSCHE BANK
• The Citibank timeline • Summary
• Financial analysis of Citigroup • Deutsche Bank overview
- Financial ratios for Citigroup • The Deutsche Bank timeline
• SWOT analysis of Citibank • Financial analysis of Deutsche Bank
- Strengths - Financial ratios for Deutsche Bank
- Weaknesses • SWOT analysis of Deutsche Bank
- Opportunities - Strengths
- Threats - Weaknesses
• Analysis of Citigroup in 2004 - Opportunities
- Threats
CHAPTER 4: COMPANY ANALYSIS: FORTIS • Analysis of Deutsche Bank in 2004
• Summary
• Fortis overview
• The Fortis timeline
• Financial analysis of Fortis
- Financial ratios for Fortis
Table of Contents
CHAPTER 8: COMPANY ANALYSIS: BNP PARIBAS
• Summary
• BNP Paribas overview
• The BNP Paribas timeline
• Financial analysis of BNP Paribas
- Financial ratios for BNP Paribas
• SWOT analysis of BNP Paribas
- Strengths
- Weaknesses
- Opportunities
- Threats
• Analysis of BNP Paribas in 2004
CHAPTER 9: COMPANY ANALYSIS: ROYAL BANK OF
SCOTLAND
• Summary
• Royal Bank of Scotland overview
• The Royal Bank of Scotland timeline
• Financial analysis of Royal Bank of Scotland
- Financial ratios for Royal Bank of Scotland
• SWOT analysis of Royal Bank of Scotland
- Strengths
- Weaknesses
- Opportunities
- Threats
• Analysis of Royal Bank of Scotland in 2004
CHAPTER 10: COMPANY ANALYSIS: BARCLAYS BANK
• Summary
• Barclays Bank overview
• The Barclays Bank timeline
• Financial analysis of Barclays Bank
- Financial ratios for Barclays Bank
• SWOT analysis of Barclays Bank
- Strengths
- Weaknesses
- Opportunities
- Threats
• Analysis of Barclays Bank in 2004
CHAPTER 11: COMPANY ANALYSIS: CREDIT SUISSE
• Summary
• Credit Suisse overview
• The Credit Suisse timeline
• Financial analysis of Credit Suisse
- Financial ratios for Credit Suisse
• SWOT analysis of Credit Suisse
- Strengths
- Weaknesses
- Opportunities
- Threats
• Analysis of Credit Suisse in 2004
CHAPTER 12: COMPANY ANALYSIS: BANK OF
AMERICA
• Summary
• Bank of America overview
• The Bank of America timeline
• Financial analysis of Bank of America
- Financial ratios for Bank of America
• SWOT analysis of Bank of America
- Strengths
- Weaknesses
- Opportunities
- Threats
• Analysis of Bank of America in 2004
TABLES
• Top 10 global banks, by revenue income in 2003
• Top 10 foreign banks in Central and Eastern Europe
• Leading U.S. bank M&A deals
• Financial ratios for Citigroup
• Financial ratios for Fortis
• Financial ratios for Crédit Agricole
• Financial ratios for HSBC
• Financial ratios for Deutsche Bank
• Financial ratios for BNP Paribas
• Financial ratios for Royal Bank of Scotland
• Financial ratios for Barclays Bank
• Financial ratios for Credit Suisse
• Financial ratios for Bank of America
FIGURES
• Composition of household assets, CEE 3/Euro region
• FTSE 100 Performance
• SWOT analysis of Citibank
• SWOT analysis of Fortis
• SWOT analysis of Crédit Agricole
• SWOT analysis of HSBC
• SWOT analysis of Deutsche Bank
• SWOT analysis of BNP Paribas
• SWOT analysis of the Royal Bank of Scotland
• SWOT analysis of Barclays Bank
• SWOT analysis of Credit Suisse
• SWOT analysis of Bank of America
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