Adding 5% to ROE: How Banks Can Do More with Less

REPORT PREVIOUSLY PUBLISHED BY OLIVER WYMAN
August 22, 2012
Asia-Pacific, EMEA, North America

Abstract

European banks are under more pressure today than ever before. Returns on equity are at unsustainably low levels, even with artificially low interest rates and central bank support. Investor nervousness and the great “re-regulation” mean that funding and capital are more precious commodities than they have ever been. Management’s focus throughout the crisis has rightly been on the critical defensive actions, such as a wave of deleveraging.

However, sooner or later, management will need to turn their attention to developing a sustainably profitable business. Business models will need to be revisited and banks will need to become far more effective in gathering and deploying their financial resources. In this perspective, Adding 5% to ROE: How Banks Can Do More with Less, Oliver Wyman explains how financial resource management will become a defining capability of a successful future.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Introduction

2

What Is Financial Resource Management?

3

Why Isn’t This Easy?

8

Do I Have to Do This Now?

9

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