Banking Industry Survey at Global Level Elaborated by Timetric23 Aug 2012 • by Natalie Aster
Within the global banking industry, 45% of survey respondents are ‘more optimistic’ with regards to revenue growth for their companies over the next 12 months compared to the previous 12. This optimism is driven by the growth of industry in emerging nations such as China, India, Brazil and Indonesia. The banking industry in emerging nations proved to be relatively resilient to the global financial crisis.
The main business priorities identified by respondents from banks for 2012 are to ‘improve operational efficiency’, ‘capital and risk management’ and ‘introduce new products and services’. Banks which are capable of managing their operational costs are also able to withstand uncertain and volatile economic conditions. For example, French banking major Credit Agricole reported a net income of EUR1 billion (US$1.2 billion) for the first quarter of 2011, compared to the EUR470 million (US$577 million) it recorded in the first quarter of 2010.
Executives anticipate increased levels of consolidation over the next 12 months. The main reasons for this are: changing capital requirement regulations, pressure on the bottom-line of companies forcing them to look for inorganic methods of growth, a growing focus on divestitures and a desire to increase their global market presence.
The new research "Global Banking Industry Outlook Survey 2012–2013: Industry Dynamics, Market Trends and Opportunities, Marketing Spend and Sales Strategies" by Timetric states that global economic conditions have led many small and medium-sized companies to participate in M&As. A director-level respondent from a financial institution based in the UAE stated: “Due to the weakening economic conditions, more small and medium-size enterprises are looking towards M&As to achieve cost synergies and increase their market shares.”
Global Banking Industry Outlook Survey 2012–2013: Industry Dynamics, Market Trends and Opportunities, Marketing Spend and Sales Strategies
Published: August, 2012
Price: US$ 2.000,00
Among the emerging markets, respondents from the banking industry identified China, India, Brazil, Russia and Indonesia as the territories likely to offer the strongest growth opportunities to the global banking industry in 2012. Demand is being primarily driven by growth in Brazil, Russia, India and China (BRIC) countries.
China was identified as the leading-emerging market by 47% of respondents. China’s rapid economic development has made it an attractive destination, not only for banking but many other industries. The nation has emerged as the second-largest economy in global terms, meaning banks and other financial institutions are anxious to establish operations in this location. Solid economic fundamentals and stringent regulations have helped the Chinese banking sector to record positive growth and reduce its exposure to external market conditions. Foreign banks still find it difficult to enter the Chinese market owing to stringent regulations.
More information can be found in the report “Global Banking Industry Outlook Survey 2012–2013: Industry Dynamics, Market Trends and Opportunities, Marketing Spend and Sales Strategies” by Timetric.
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