The Horizon Group’s Post

Major U.S. and European investment banks are expected to ease job cuts in their advisory and underwriting businesses following a recovery in sector revenues. Revenue-generating front-office headcount at the investment bank divisions (IBD) of the top 12 global investment banks totaled 17,400 as of June 30, 2024, down from 18,400 at the end of 2021, according to Coalition Greenwich (a division of CRISIL). While job cuts continued into 2024, they are expected to slow later this year as revenues rebound. "The cost constraints are always there, but I don't think at the moment the cost cutting is coming from firing papers," said Eric Li, head of global banking research at Coalition Greenwich. "It's more coming from how do you control your third-party spending, your travel and entertainment cost." S&P Global Market Intelligence Vanya Damyanova https://lnkd.in/ewkPPrj4

Banks could roughly double their current valuations and improve price-to-book ratios to 1.25, on average, if they take major steps to boost productivity, a report published on Monday by the Boston Consulting Group (BCG) has found. Follow the link for more details: https://zurl.co/YF8M #financemiddleeast #finance #banking #BCG

US Bank Study Highlights Key Priorities and Challenges for Finance Leaders in 2024 https://lnkd.in/eUQugcV8

We received 900+ responses to the 2023 compensation survey, of which 98% were from investment banking professionals.  The data was cleaned and standardized across roles, titles, geographies and bank sizes. Results are summarized from Analyst through Group Head. In some cases, results are not shown due to limited responses. Please note, the data we received is based on user submissions. If some data points are missing or seem off, it may be because a) we do not have a significant number of data points to get an accurate result b) data provided may be inaccurate.

We received 900+ responses to the 2023 compensation survey, of which 98% were from investment banking professionals.  The data was cleaned and standardized across roles, titles, geographies and bank sizes. Results are summarized from Analyst through Group Head. In some cases, results are not shown due to limited responses. Please note, the data we received is based on user submissions. If some data points are missing or seem off, it may be because a) we do not have a significant number of data points to get an accurate result b) data provided may be inaccurate.

We received 900+ responses to the 2023 compensation survey, of which 98% were from investment banking professionals. The data was cleaned and standardized across roles, titles, geographies and bank sizes. Results are summarized from Analyst through Group Head. In some cases, results are not shown due to limited responses. Please note, the data we received is based on user submissions. If some data points are missing or seem off, it may be because a) we do not have a significant number of data points to get an accurate result b) data provided may be inaccurate.

The big four banks in Australia recorded a combined after tax profit of $15 billion for the first half of 2024, according to KPMG Australia's Australian Major Banks Half Year 2024 Results Analysis, down 10.5% compared to the corresponding period last year. However, operating costs and and impairment charges also feel. The major banks maintained robust capital and liquidity positions, with the average liquidity coverage ratio (LCR) increasing to 135.3% and the common equity tier 1 (CET1) ratio reaching 12.6%. Interim dividends were up 2.9%. "These results demonstrate the continued strength of the majors, maintaining asset base growth, healthy capital and liquidity positions, and with credit quality continuing to show no significant signs of stress,” said KPMG banking partner Maria Trinci. You can read the full story, including comments from KPMG head of banking and capital markets Steve Jackson and KPMG banking partner Kim Lawry, here: https://lnkd.in/gWw9KpMv #bankingindustry #bankingdata #majorbanks #bigfourbanks

✨DEUTSCHE BANK EXPECTS TO CUT 3,500 JOBS OVER THE NEXT TWO YEARS✨ Frankfurt-headquartered Deutsche Bank expects to cut approximately 3,500 roles over the next two years as part of its ongoing €2.5 billion operational efficiency programme. Deutsche Bank expects to cut around 3,500 jobs over the next two years The German investment bank says the cuts will mainly apply to “non-client-facing areas” as it looks to streamline its business in Germany and lower its annual total operating cost to €20 billion by 2025. Deutsche Bank currently employs around 90,000 people worldwide. This business optimisation – which will largely pertain to the bank’s infrastructure and technology – will include the de-commissioning of certain applications, the installation of “simplified workflows and automation” and a “front-to-back process redesign”. Deutsche Bank says it made “further progress” in its operational efficiency programme during 2023 – part of its Global Hausbank strategy. It claims its actions over the year generated €350 million in savings, boosting its total savings made since the start of the programme to €900 million. The bank reported a pre-tax profit of €698 million in Q4 2023 – down 10% on Q4 2022. It attributes this to its all-cash acquisition of investment bank Numis; a move it completed in October. At the same time, its non-interest expenses are up 6% to €21.7 billion, with its non-operating costs shooting up from 2022’s €474 million to €1.1 billion last year. Despite this, Deutsche Bank still managed to achieve a 2% year-on-year rise in its pre-tax profits, while its revenues also grew 6% to €28.9 billion. Speaking on the bank’s full-year performance for 2023, Christian Sewing, CEO of Deutsche Bank, says it “underlines the strength of our Global Hausbank strategy as we help our clients navigate an uncertain environment”. “We have achieved our highest profit before tax in 16 years, delivered growth well ahead of target and maintained our focus on cost discipline while investing in key areas,” Sewing claims. “Our strong capital generation enables us to accelerate distributions to shareholders. This gives us firm confidence that we will deliver on our 2025 targets.” Spartan International Executive Search Spartan International Group Oliver Rolfe https://lnkd.in/eqnMrNGM

📊💼 Excited to delve into banking sector analysis with a professional lens! As a finance professional, I'm thrilled to share insights into the banking sector. Here are key factors influencing performance: 1️⃣ Asset Quality: Scrutinizing Non-Performing Loans and loan loss provisions reveals a bank's credit risk. 2️⃣ Revenue Streams: Diversifying beyond interest income with fees, wealth management, and investment banking enhances growth. 3️⃣ Banking Infrastructure: A robust tech setup boosts efficiency, customer experience, and innovation. 4️⃣ Capital Adequacy Ratio (CAR): CAR, including Tier 1 and Tier 2 ratios, gauges financial strength and resilience. 5️⃣ Return Metrics: Evaluating Return on Equity (ROE) and Return on Assets (ROA) shows profitability and efficiency. 6️⃣ Interest Income: Monitoring Net Interest Income (NII) and Margin (NIM) reveals lending profitability and interest rate risk management. Synthesizing these factors offers invaluable insights into banking sector performance. Your feedback is crucial as we navigate these intricacies together! Your insights and feedback are highly valued as we collectively navigate the intricate terrain of the banking sector. Let's embark on this journey of exploration and discovery together! Let's explore further and exchange perspectives! #BankingSectorAnalysis #FinancialInsights #investingstrategy #financeandaccounting #financialanalysis #researchreport #financialmodeling

2024 Mid-Year Outlook Global M&A Trends in Financial Services Financial services dealmaking remains challenging in the second half of 2024, although pressure is mounting on industry players to use M&A to transform and grow. "The financial services (FS) deals market is likely to remain muted for the remainder of 2024, marked by continued uncertainty stemming from challenging macroeconomic conditions and geopolitical tensions. In this environment, mega deals, in particular, face obstacles. Dealmakers should nonetheless remain positive about the medium-term M&A outlook because of many different factors putting pressure on FS players to accelerate their transformations to remain relevant and profitable. Some factors are cross-sector such as digitalisation, sustainability and workforce challenges. In addition, FS has more sector specific factors such as pressure on costs and quality of assets, as well as uncertainty regarding interest rate policies by central banks worldwide—which are all leading to pressure on profitability and equity of FS players. M&A continues to be an essential part of the transformation journey, especially as organic growth faces severe challenges in the current macroeconomic environment. M&A-related transformation steps may include acquisitions to enhance capabilities and drive future growth through economies of scale and scope. Alternatively, divestitures may help to improve operations and recalibrate business models. When the market does pick up, we see dealmakers favouring smaller transactions rather than mega deals to undertake transformational change. In part, this reflects the highly regulated and risk-focused nature of the sector as well as the uncertainty within the FS industry. We also expect deal processes to last longer and to be more complex as gaps between buyers and sellers on valuations have created more intense purchase negotiations. “Market uncertainty is splitting the FS deals market into movers and non-movers. I see opportunities for active dealmakers to use acquisitions or disposals—or both—to solidify their future positioning and gain a competitive edge.” Prospects for M&A growth in India’s FS sector and beyond are strong. Underlying factors include the overall outperformance of the Indian economy, together with favourable demographics and rising disposable income from a growing middle class, digitalisation of services, maturing capital markets and government reforms to improve the business environment." https://lnkd.in/dzzFbT2B Source: PwC PwC South Africa Christopher Sur Global, EMEA and Germany Financial Services Deals Leader, Partner, PwC Germany #Economics #MacroEconomics #MergerAcquisition #GlobalEconomics