The largest banks in the UK are healthier and be profitable, but must
urgently deal the maximum return on equity, they go their separate ways,
according to a report by KPMG.
The latest report bench marking the Bank, a paradox Forces, the results of the full year analyzed the five largest banks in the UK - RBS, Lloyds, HSBC, Barclays and Standard Chartered - taxes found their phones before benefits reached EUR 20.6bn 2014 £ 7.9 billion or 62 percent to EUR 12.7 billion in the previous year.
The increase in earnings against the backdrop of a decline in revenues of 12 per cent or £ 18 billion to £ 127.2bn, as banks focus on less risky activities. The rate at which the banks to reduce costs are very different, the cost-income ratios of between 51 percent and 87 percent.
After the consolidation of the economic conditions, the overall cost of the value of loans decreased by 72 percent or 5.2 billion to £ 13.5 billion pounds. Although the level of impaired loans as a percentage of total loans and advances to customers fell by an average of 3.4 percent, twice as high as 1.6 percent even before the crisis. This, with the fact that the capital ratios have the balance sheets of banks means strengthened, that they are now. In a much healthier state
However, the report also shows that the Re-client status, to make mistakes and still be sanctions a big problem because the costs were EUR 38.7bn, accumulated more than 60 percent of its profits since 2011. Travel expenses in the last year it was £ 9.9 billion, only 8 per cent since 2013, with almost half of the cost compared to the actual cost of payment protection insurance and interest rate hedges.
And banks headquartered in the UK are still not on their cost of capital, which in the long run, is an untenable position as a corporate value is eroded. Three of the five banks trading below their book value, and none of the surveyed banks achieved a return on equity of more than 8 percent, compared with an average of 11.6 percent in the year of 2009.
The report gives an overview depending on the bank, as they begin to make their new business plans to different results. For example, the yield on the two state-supported banks can continued to increase since it dropped to three global banks.
Bill Michael, Chief Financial Officer EMA KPMG, said: "Banks are experiencing a change once in a lifetime, as they make the changes in regulations, technology and expectations of society.
"At the same time, competition is increasing as new banks Challenger platforms and peer-to-peer offer to lend our customers new ways and deposit services and technology and PayPal electronic purses change to transfer the way of money and they and goods to pay services.
"Targeted banking by country focus on the restructuring of its activities. This investment bank considerable assets challenges around the ring fence their retail and investment banking, which will be mandatory in 2019 the UK as a financial center was largely built by the non-retail banking. If more regulation creates too many restrictions on non-retail banking, industry risks losing its global relevance.
"Some banks are to follow a path of gradual development, while others opt for more radical strategic change. In the short term, banks continue to focus on cost control and investment in technologies to improve services.
"While it is important, the customer comes first, the integration of cultural change and embrace technology, it will be the banks that have a clear and sustainable business model that the best chance of success in the future."
Pamela McIntyre, director of the Bank Audit at KPMG, said:. "Banks are in a transitional phase, as yet to adjust their business plans to the changing regulatory landscape is the long-term prognosis uncertain justice, but our report shows that there is clear evidence of a change.
"Banks have improved their balance sheets and are on track to meet its targets for capital, leverage and liquidity. Improving the unanimous commitment to customer service, is also reflected in the annual reports. But in the end is one of the most important measures of success the return on equity, the unsustainable remains below the cost of capital for banks.
"Cost reduction will continue. But the banks need to use new technologies in order to increase the profitability of its customers and reduce costs. You will be provided access to data that provides information about Silos integration in question, and compliance with the provisions of Basel Committee. We are in a time when chief information officers play an important role in determining the future direction of the banks. "
Among the key findings:
Four of the five banks took the important step of including information on customer satisfaction in their annual reports
of £ 77 billion EUR 2 billion declined assets
Average Common Equity Tier (CET) 1 capital increased to 11.1 percent compared to 9.9 percent in 2013
Combines the receivables from customers decreased by 2 percent to 2.1 billion pounds
Leverage ratios vary from 3.7 to 4.9 percent - defined banks, the ratios of more than 4 percent to meet
The latest report bench marking the Bank, a paradox Forces, the results of the full year analyzed the five largest banks in the UK - RBS, Lloyds, HSBC, Barclays and Standard Chartered - taxes found their phones before benefits reached EUR 20.6bn 2014 £ 7.9 billion or 62 percent to EUR 12.7 billion in the previous year.
The increase in earnings against the backdrop of a decline in revenues of 12 per cent or £ 18 billion to £ 127.2bn, as banks focus on less risky activities. The rate at which the banks to reduce costs are very different, the cost-income ratios of between 51 percent and 87 percent.
After the consolidation of the economic conditions, the overall cost of the value of loans decreased by 72 percent or 5.2 billion to £ 13.5 billion pounds. Although the level of impaired loans as a percentage of total loans and advances to customers fell by an average of 3.4 percent, twice as high as 1.6 percent even before the crisis. This, with the fact that the capital ratios have the balance sheets of banks means strengthened, that they are now. In a much healthier state
However, the report also shows that the Re-client status, to make mistakes and still be sanctions a big problem because the costs were EUR 38.7bn, accumulated more than 60 percent of its profits since 2011. Travel expenses in the last year it was £ 9.9 billion, only 8 per cent since 2013, with almost half of the cost compared to the actual cost of payment protection insurance and interest rate hedges.
And banks headquartered in the UK are still not on their cost of capital, which in the long run, is an untenable position as a corporate value is eroded. Three of the five banks trading below their book value, and none of the surveyed banks achieved a return on equity of more than 8 percent, compared with an average of 11.6 percent in the year of 2009.
The report gives an overview depending on the bank, as they begin to make their new business plans to different results. For example, the yield on the two state-supported banks can continued to increase since it dropped to three global banks.
Bill Michael, Chief Financial Officer EMA KPMG, said: "Banks are experiencing a change once in a lifetime, as they make the changes in regulations, technology and expectations of society.
"At the same time, competition is increasing as new banks Challenger platforms and peer-to-peer offer to lend our customers new ways and deposit services and technology and PayPal electronic purses change to transfer the way of money and they and goods to pay services.
"Targeted banking by country focus on the restructuring of its activities. This investment bank considerable assets challenges around the ring fence their retail and investment banking, which will be mandatory in 2019 the UK as a financial center was largely built by the non-retail banking. If more regulation creates too many restrictions on non-retail banking, industry risks losing its global relevance.
"Some banks are to follow a path of gradual development, while others opt for more radical strategic change. In the short term, banks continue to focus on cost control and investment in technologies to improve services.
"While it is important, the customer comes first, the integration of cultural change and embrace technology, it will be the banks that have a clear and sustainable business model that the best chance of success in the future."
Pamela McIntyre, director of the Bank Audit at KPMG, said:. "Banks are in a transitional phase, as yet to adjust their business plans to the changing regulatory landscape is the long-term prognosis uncertain justice, but our report shows that there is clear evidence of a change.
"Banks have improved their balance sheets and are on track to meet its targets for capital, leverage and liquidity. Improving the unanimous commitment to customer service, is also reflected in the annual reports. But in the end is one of the most important measures of success the return on equity, the unsustainable remains below the cost of capital for banks.
"Cost reduction will continue. But the banks need to use new technologies in order to increase the profitability of its customers and reduce costs. You will be provided access to data that provides information about Silos integration in question, and compliance with the provisions of Basel Committee. We are in a time when chief information officers play an important role in determining the future direction of the banks. "
Among the key findings:
Four of the five banks took the important step of including information on customer satisfaction in their annual reports
of £ 77 billion EUR 2 billion declined assets
Average Common Equity Tier (CET) 1 capital increased to 11.1 percent compared to 9.9 percent in 2013
Combines the receivables from customers decreased by 2 percent to 2.1 billion pounds
Leverage ratios vary from 3.7 to 4.9 percent - defined banks, the ratios of more than 4 percent to meet