January 27, 2025
A&M Global Banking Pulse featured in UK Finance
We are pleased to share that Alvarez & Marsal’s Global Banking Pulse Report was recently featured in UK Finance.
In our blog post "Global Banking Pulse: Reviewing the Performance of the Largest Banks in H1 2024" we provided an analysis of the top 35 global banks, including 25 headquartered in Europe and 11 in North America.
Our report compared key performance metrics across several areas:
- Growth: North American banks showed stronger growth in their Loans & Advances portfolios, while European banks saw higher growth in customer deposits.
- Revenue and Efficiency: North American banks led in revenue generation due to higher net interest margins, whereas European banks excelled in operational efficiency with lower cost-to-income ratios.
- Resilience: European banks had a lower cost of risk, but higher non-performing loan levels compared to North American banks. However, they were stronger in capital and liquidity resilience.
- Market Value Creation: North American banks had higher return on equity and return on assets. This higher profitability is accompanied by lower capital levels, reflected with a substantial difference in CET1 headroom.
Our report further highlights the diverse strategies employed by banks to achieve growth, efficiency, and resilience, and underscored the importance of adapting to regional market conditions.
