1. Market Research
  2. > Financial Services
  3. > Banking Market Trends

Financial Assessment of the Global Investment Banking Industry

  • 88 pages, published in December 2013
  • By Frost & Sullivan
  • Report Number: 1936429

Summary

Table of Contents

Conservatism, Stability, and Lower Returns—The New Norm for the Industry?

Executive Summary

The landscape of the investment banking industry has changed significantly since the financial crisis. The high-growth industry, half a decade ago, is now transformed to a single-digit or a stagnant growth industry. Investment banks that are claimed “too big to fail” are facing litigation issues that transfer into huge costs affecting profitability. Most investment banks have either already announced or are scheduled to announce their new business strategies or operating models that would make the organization leaner, more productive, and profitable. Several mergers, acquisitions, and spin-off transactions may take place in the next three years (2014 to 2017) as a result of the strategic initiatives taken by investment banks to discard their non-core business, while focusing and developing their core strengths.
As a result of widespread and unavoidable cost-saving measures, the investment banking industry has taken to adopting more efficient technology that reduces turnaround time, conservative risk management practices, caps on salaries of investment banking professionals, and downsizing of human resources. Basel III, the Dodd Frank Act, and other regulations have also impacted the capital base and other operating metrics of the investment banking industry as companies would have to incur additional costs to comply with these regulations.
All of the aforementioned factors have a huge impact on the financial profitability, stability, and strength of the investment banking industry. This research studies the financial and risk management trend with respect to ratio analysis that encompasses profitability, solvency, liquidity, and capital management ratios. A snapshot of ratio analysis for the financial year 2012 is presented in the next slide.
The global investment banking industry is expected to grow at xx% in 2014, reaching a total market size of $xx billion. North American investment banks would face a flat growth period but would still remain profitable, while European investment banks would struggle to remain stable and profitable. Asia-Pacific investment banks would continue to remain profitable but may be considered to be more risky than investment banks in Latin America and the Caribbean that are more stable, risk averse, and profitable. Investment banks in Africa and the Middle East are expected to remain profitable with high growth and increasing competition in 2014.

Key Study Objectives Include:

To analyze companies in the investment banking industry based on key financial metrics and financial ratios.
To identify key performance drivers and restraints that impact the current industry situation and develop an outlook for 2014.
To identify the best performers in the industry based on financial performance between 2007 and 2013 (first half).
To identify, compare, and assess regions/countries that are current and potential hubs of investment banking activity.
To identify the best practices of top performers and do a competitor analysis (by region) based on financial parameters.

Scope of the Study

- Study Period (time frame) : The study is based on financial year (FY) 2007 and FY 2012 for all global companies analyzed. It also includes the actuals of financial half (FH) 2013. The numbers of the second half (H2) of 2013 and FY 2014 are estimated. The base year is 2012.
- Regions Covered : Global: Divided into five regions. North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America and the Caribbean.
- Companies Covered : A total of xx public companies across the globe were surveyed as a part of the analysis in this study. The companies were chosen based on consistent availability of data throughout the study period.
- Ratios Covered : Six sets of ratios: Profitability Management, Cost Management, Capital Management, Solvency, and Liquidity Management.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 60 Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

Veronica helps you get this report now

Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

Purchase Reports From Reputable Market Research Publishers

Hardware Security Modules Market by Type, Application, Industry, and Geography - Global Forecast to 2022

  • $ 5650
  • Industry report
  • March 2017
  • by MarketsandMarkets

“The hardware security modules market is likely to grow at a CAGR of 12.87% during the forecast period” The hardware security modules market is expected to reach USD 1,101.2 million by 2022, at a CAGR ...

UK Savings: 2016 Review, Forecasts and Future Opportunities

  • $ 5250
  • Industry report
  • January 2017
  • by GlobalData

Summary Retail deposits for 2016 are expected to be 6% higher than in 2015. However, market conditions over the next few years are predicted to dampen prospects for future growth. UK retail deposits will ...

2017: Key Trends in Retail Banking

  • $ 5250
  • Industry report
  • January 2017
  • by GlobalData

2017: Key Trends in Retail Banking Summary Threat posed by the commoditization of banking in terms of pressures on margins and reduced customer loyalty is constantly growing. However, data analytics will ...

Global Banking Industry - 2017

March 2017 $ 4500

ref:plp2013

Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.