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

Investment Analysis of the US Banking Industry : Community Banks and Thrifts to Drive Growth

  • December 2014
  • 61 pages
  • Frost & Sullivan
Report ID: 2575140


Table of Contents

Executive Summary

The banking industry has changed significantly since the 2008 financial crisis—transforming from high growth to stagnation. Banks that are claimed to be “too big to fail” are facing litigation that translates into huge costs affecting profitability. Most investment banks have either already announced or are scheduled to announce new business strategies or operating models that would make the organizations leaner and more productive and profitable. Several mergers, acquisitions, and spin-off transactions may take place through 2019 as a result of banks’ strategic initiatives to discard their noncore businesses while focusing on and developing core strengths. The industry’s widespread and unavoidable cost-saving measures have included adoption of more efficient technology that reduces turnaround time, conservative risk management practices, salary caps, and layoffs.

Additional costs to comply with Basel III, the Dodd-Frank Act, and other regulations have affected capital base, return on equity, and other operating metrics. Customer centricity, digital convergence, increasing competition, revenue growth struggles, process integration, product innovation, defining new target segments, and changing business models are the real challenges facing the industry. The new banking landscape that meets these challenges will strike a balance between risk and profitability and be more stable, dependable, and sustainable.
This research provides an overall perspective of the US banking industry, including market statistics, business models, products and operating environment, financial strength analysis, and transaction and investment analysis.

Study Objectives

To analyze companies in the US banking industry based on key financial metrics and financial ratios
To identify key performance drivers and restraints that affect the current industry and to develop an outlook for 2015
To identify the best performers in the industry based on financial performance from January 2007 to July 31, 2014
To identify and assess trends in transaction activity such as private placement, public offerings, and mergers
To elaborate best practices of top performers and do a competitor analysis based on financial parameters

Study Scope

The study is based on financial year (FY) 2009 through FY 2013 data for analyzed companies. Numbers for FY 2014 are included based on availability and may not represent actual market figures. The base year is 2013.
Transaction analysis is done from January 2007 to July 2014.
A total of x public companies in the United States were analyzed. The companies were chosen based on consistent availability of data throughout the study period.
Five sets of ratios: profitability management, cost management, capital management, solvency, and liquidity management

Market Overview

The US banking industry continues its path to recovery amid a rapidly changing business environment with new challenges and ever-increasing regulations. Industry growth has slowed sixfold between 2010 and 2013. This decline can be attributed to fewer revenue sources, increasing costs of regulatory compliance and technology convergence, and a silo-type operating structure. The industry is focusing on reducing costs to increase profits, because finding new revenue sources is increasingly difficult. However, cost cutting cannot be a sustainable profitability model. The industry will move to a digital landscape to gain flexibility, increase customer interactions and loyalty, address new customer preferences, strengthen distribution channels at a low cost, and develop a leaner, integrated, and efficient operating model. These changes will bring about a permanent structural shift in operations, profitability, and return. Returns on equity (ROEs), returns on assets, and net interest margins will continue to contract while capital ratios and risk management practices improve, striking a balance between profitability and risk control.
The top x banks account for x % of total banking revenue and x % of total assets in the US banking system. Consolidation could be another growth avenue as large banks acquiring nonbank service providers and small and specialized banks to gain synergies and strengthen core operations. Much of the capital required to pursue such strategies would come from internal sources and the shedding of noncore operations, which would result in a more robust business model suitable for survival in the hypercompetitive environment.
The US banking industry is set to mark a new beginning in its lifecycle and move toward a more sustainable, reliable, and efficient structure while continuing to emerge from the 2008 financial crisis.

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.

Ahmad helps you find the right report:


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

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

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

Acquiring and Switching Vendor Comparison Report

  • $ 12618
  • Industry report
  • June 2017
  • by PayX International

The hugely popular and respected PayX Acquiring and Switching Vendor Comparison Report (8th year edition) is now available. With updates on all top vendors, it enables any operational payments company ...

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 ...

Tokenization Market by Solution, Service, Application Area, Deployment Mode, Organization Size, Vertical, and Region - Global Forecast to 2022

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

The growing concern over increased credit and debit card frauds is driving the tokenization market The tokenization market size is expected to grow from USD 823.0 million in 2017 to USD 2,258.6 million ...

Download Unlimited Documents from Trusted Public Sources

Banking Statistics in the UK

  • July 2017
    12 pages
  • Banking  

  • United Kingdom  

View report >

Banking Markets in Kuwait, Monthly Update

  • July 2017
    3 pages
  • Banking  

    Retail Banking  

    Bank Lending  

  • Kuwait  


View report >

Oil Industry in United Arab Emirates and Saudi Arabia - Forecast

  • July 2017
    8 pages
  • Oil  

  • United Arab Emi...  

    Saudi Arabia  


View report >

Metals Forecast

1 day ago


Reportlinker.com © Copyright 2017. All rights reserved.

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