Cost reduction in the European Banking sector - Roland Berger
Cost reduction in the European Banking sector - Roland Berger
Cost reduction in the European Banking sector - Roland Berger
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Announced plans reflect a turnaround from cost conta<strong>in</strong>ment<br />
to active cost <strong>reduction</strong><br />
Evolution of <strong>European</strong> Banks <strong>Cost</strong>: Income Ratio<br />
70<br />
69%<br />
65<br />
60<br />
Actual CIR<br />
55<br />
-0.5 pt/year<br />
Expected CIR<br />
61%<br />
-1.5 pt/year<br />
55%<br />
0<br />
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016<br />
In a different top l<strong>in</strong>e growth context !<br />
NBI growth/year 3 to 5% +/-1%<br />
Base case :<br />
-10% COSTS<br />
OVER 2012-2016<br />
-40 Bn EUR<br />
Stress case: -17% (-68 Bn EUR)<br />
<strong>Cost</strong> growth/year<br />
2 to 4% -0.5 to.-2.5%<br />
Source: Bloomberg, Broker reports, Annual reports, <strong>Roland</strong> <strong>Berger</strong> Strategy Consultants analysis<br />
Bank<strong>in</strong>g_cost_<strong>reduction</strong>_FINAL_270712.pptx<br />
9
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