David Schiff’s Post

J.P. Morgan, Bank of America, Citi, Wells Fargo and Goldman Sachs are among the banks and thrifts with the most assets at the end of March. Read here to see how the leaders fared. https://bit.ly/3W9dPA1 #banking

In an untypical strategy not seen at other banks, the Cadence Bank executives have taken steps to flatten their executive team by combining executive roles with one person. This is a strategy other executive teams would be wise to emulate. But to often the go-to strategy is to layoff rank & file by the hundreds, which too often is a strategy that setup the organization for unintended consequences. This is an interesting new bold move. #banks #businessstrategy #makingharddecisions

I’ve watched, over decades, hundreds of #bank #restructurings, #strategy #revamps & #updates come & go. In recent days alone, we’ve had #Citi, #SG, #Santander. Re-orgs & strategy shifts tend to be very similar regardless of the business model/geography of the bank in question. Open question: has any of them has made a real, durable difference? (I mean really.) Despite the way they’re richly articulated, re-orgs/revamps tend to be less attempts at building Banking Utopia 3.0; more tickets to buy time to fix problems. Problems we're told were caused by the previous management structure or strategy. (They rarely are). When I heard Citi boss Jane Fraser say that the org changes the bank had announced were the most consequential to how it will be organised & run in almost 20 years, I had a déjà vu moment. Not because of Fraser herself; she's clearly highly accomplished but because here was another narrative right out of the consultant’s playbook. So we heard about simplifying, streamlining, flattening, aligning, cutting redundancy/overlap, driving accountability, benefiting from linkages & strengthening client delivery in order to unlock value potential to deliver better returns to shareholders. Heard that before? Citi’s issue is its share price. And now that the CEO’s comp package has been much more closely aligned with the interests of shareholders (incentives are tightly lashed to the mast of the share price) it’s an issue doubly owned by the CEO. Of course there's always a Plan B. If the re-org doesn't work, restructure again ... Banks & the dark arts of eternal restructuring: https://lnkd.in/e9uuzM7B The Asset

Investment banking in ultra low interest rates environment is so different competition than nowadays where we are livin now

Those of us painfully holding shares in Scotiabank for the last decade waited with baited breath to hear what new CEO had planned for the organization. To paraphrase Shania Twain, "it don't impress me much." Nothing I read here or in the executive presentations are groundbreaking. As for earnings growth, this new strategy will deliver > 7% CAGR over the next 5 years. Whoo hoo!. However, what if we used the earnings in 2022 as our base? Then we are looking at a growth rate of 1%. Maybe, it won't be that bad, but when you depress the earnings number with inflated credit provisions and write-downs on assets we should expect above-average earnings growth going forward. I hope this is one of those "under-promise and over-deliver" types of presentations. #banking #projections #manipulation #strategy

Cost Managment if done well, can strengthen a bank. If you need to cut costs, make sure you do it strategically and preserve value.

Morning News with Visbanking: Big banks Goldman Sachs and Bank of America released dramatically different third quarter profit reports this week. To read the full article go to our website: https://lnkd.in/ecZrZkAK Don't forget to follow us on our social media so you don't miss the latest banking news. #BankofAmerica #GoldmanSachs #banking #investments #reports

This will be interesting to watch play out. It is an indication that the acquisition of SunTrust by BB&T was the wrong decision. Both in the current situation and in looking at the performance of Truist. That US Bancorp is going to shrink on purpose to become smaller is telling. #Biggerisnotbetter

Does America Need More Big Banks? The four universal megabanks that now dominate the economy — JPMorgan Chase, Bank of America, Citigroup and Wells Fargo — have grown significantly As we witness the continued growth and consolidation of large banks, it becomes imperative to reflect on what kind of banking system will best serve the needs of Americans. The diversity of our current banking landscape, with its mix of community banks, regional lenders, and megabanks, offers a range of services tailored to different segments of the economy. However, the trend towards consolidation raises concerns about the potential impact on competition and consumer choice. Regulators must carefully consider the implications of further consolidation and mergers, especially among the largest banks. A clear strategy to promote healthy competition is essential to ensure that the banking sector remains safe, resilient, and responsive to the needs of all Americans. As we navigate the challenges of a rapidly evolving financial landscape, it is crucial that we work towards a banking system that serves the best interests of our economy and society as a whole. #banking #communitybanking #commercialbanking #regulatorycompliance #regulatory

UniCredit is a fundamentally different bank today from the one I inherited when I became CEO three years ago. Transformation is no mean feat in any organisation, but in a banking group operating across 13 regions in Europe, the task in front of us was formidable and the stakes were especially high.   Three years later, we are consistently breaking our own records, having recently achieved our 13th consecutive quarter of growth, and acting as a reliable, supportive banking partner for clients across Europe in a time of unpredictable macroeconomic circumstances.   We are still on our transformation journey, but the fact we have arrived at this point today is testament to our people’s dedication. Transformation of the kind we have undertaken is possible, but only through empowering the people in your organisation to have accountability – they are responsible for the culture and values of your business, they are the drivers of change.   This change has to be towards a specific goal, which gives the transformation of your business purpose and underpins your vision and strategy. For UniCredit, this goal is to be the bank for Europe’s future. We have reorganised the business around this, making ourselves more agile, efficient, and innovative in its pursuit.   From this point, execution is essential. It is important to challenge yourself by asking what more you and your organisation can be doing to work towards the goal of your transformation; what can be improved, and what more can be done, to ensure you stay on course.   All of the above applies to any large organisation, not exclusively to banks. Through this approach, you can create a thriving, forward-thinking culture defined by accountability, leadership, and a commitment to excellence that propels your transformation forward and delivers success for all of your stakeholders.   It was a pleasure to talk about UniCredit’s transformation journey and the key issues impacting the European banking sector with Alex Frangos at The Wall Street Journal CEO Council. My time as CEO of UniCredit has been an incredible, educational, and rewarding experience. I am excited for what the next chapters of our transformation journey hold. #WSJCEOCouncil https://lnkd.in/eRnEGyXE