2024 Key Banking Themes for the Year Ahead
INTRODUCTION
The Banking Industry stands at a difficult juncture. Whilst interest rate increases have temporarily improved profitability and shareholder returns, the fundamental challenge of poor valuations and growth trajectories persists for most CEOs and boards.
From rampant shareholder value destruction, investors disbelief on banks’ ability to deliver sustained return on equity (ROE) well beyond the cost of equity, to adapting to regulations and countless failed transformation programs, banks face serious challenges.
In our latest paper, we argue that banks that drive profitability, champion effective governance and are accountable to executive management to deliver upon transformation programs, will become the real winners.
We share five key themes and key actions for bank CEO’s and boards to set a clear leadership agenda and drive profitable growth in 2024 and beyond:
- M&A activity to pick up
- Balance sheet optimisation to accelerate
- Digital transformation time to deliver
- Revenue growth from NII to finish
- Operational resilience the biggest risk
