Upload
sashank4067
View
213
Download
0
Tags:
Embed Size (px)
DESCRIPTION
BNPP CIB Analysis
Citation preview
Contents
Findings at a glance
BNPP overview
RBS Vs CIB
Strategy
Competitive Analysis
IT Spends
Latest innovations in CIB
Findings At Glance
BNPP more focused on Retail sector having higher revenues and innovations
But profitability is more on CIB sector compared to RBS
Strategy focused on improving operating efficiency and innovations
#5 Bank in terms of revenue in CIB segment in Europe region, outperformed in profit margin compared to its competitors
2014 changed to IFRS 10,11 accounting practices, lost 6bn Euros as fine to US govt.
A slow down in spending on IT purchases in 2013 increased in 2014 and will have more growth in 2015
Innovations are more in Retail sector to attract customers rather than in CIB
More concerned on reducing cost of risk
In CIB innovations are centered toward analyzing the Clients data in faster way
Bank Overview
45 Countries 15000 Clients 19000
Employee
Europe
Paris, London
Poland, Ukraine
Asia
China
Vietnam
America
North America
Latin America
Middle East
Turkey
South Africa
Retail banking services
Investment solutions
Corporate & Investment
banking
RBS vs CIB
0
5000
10000
15000
20000
25000
2014 2013 2012 2011
23528 2306124572 24361
8722 87019715 9897
Revenue
RBS
CIB
0
1000
2000
3000
4000
5000
6000
7000
2014 2013 2012 2011
Profit Before Tax
RBS
CIB
0
5
10
15
20
25
30
35
40
2014 2013 2012 2011
Profit Margin in %
RBS CIB
Even though RBS having more revenue but profit margin for CIB is more
Business Segmentation
Retail Banking Services: Retail banking networks, Personal finance, International retail banking
Investment Solutions: Wealth Management, Investment Partners covering all business of Asset Management businesses, security services, Insurance
and real estate
Corporate & Investment Banking: Advisory & Capital markets, Corporate Banking business
Strategy
Successfully implement
business development
initiatives
Successfully
Adapt certain
business to their
economic and
regulatory environment
Adapt
Continue improving operating efficiency
Continue
Simply our organization and the way
we work
Simplify
Enhance Client focus
and services
Enhance
Competitive Analysis
*Source: Roland_Berger_State_of_European_Banking_Industry_20140721.pdf
Competitive Analysis:
Credit Suisse:
Divided business into Private Banking & Wealth Management, Investment Banking
Region wise split into: Americas, Switzerland, EMEA, Asia Pacific
UBS:
Divided into Asset Management, Wealth Management, Investment Bank, Corporate center divisions
We are interested in Investment banking and corporate banking. So considering the data for corporate and investment banking alone.
Competitive Analysis
0
2000
4000
6000
8000
10000
12000
14000
BNPPCS
UBS
Revenue
2012
2013
2014
-500
0
500
1000
1500
2000
2500
3000
BNPPCS
UBS
Operating Profit
2012
2013
2014
0
20
40
60
80
100
120
BNPP CS UBS
Cost to income ratio
2012
2013
2014
-5
0
5
10
15
20
25
30
35
BNPP CS UBS
Profit Margin
Competitive Analysis:
We can observe not much increase trend in revenues. I observe the same trend in most of European banks because of European crisis issues. Of
which Credit Suisse having more revenue compared to others.
Operating profit decreased during 2013 but now on increasing trend. BNPP having good operating profits.
BNPP having very low cost/income ratio which is good figure
Profit margin is far better for BNPP, compared to competitors
By viewing all the details we can conclude that it had having good profit margin and good utilization of capital. But it need to capture more market
share.
BNPP: IT Assets
-5
0
5
10
15
20
25
0
500
1000
1500
2000
2500
3000
3500
4000
2011 2012 2013 2014
IT Assets
Purchased Internally Development Purchased Growth Growth Internal developed
We can see there is continuous growth in Internally developed software even
the market fall in 2013
I can infer from the available data, they deferred purchase of IT software in
2013, so there will be lot of IT spends in 2015. Also fintech disruption threat
supports this view.
Innovation: Trends
Innovations targets on Reducing cost, increase relationships with clients,
With innovations banks want to cater the need before they heard from the clients
Know before clients tells : So now focus on the available data about the clients and get it processed with high speed and get the recommendations for the clients
Faster: For a banker it will take a long time to analyze client data and take decisions. Now they trending towards the technology which can put all the data with in minutes
For example: Banks will monitor, inventory details, shipping details, details on social network etc, to come to the conclusion about what product should they offer to the client