Equity Analysts’ Prediction Through 2020: Time to Restructure for Profitability
Global banks face an ongoing wave of regulatory and economic challenges that will have a growing impact on profitability. Despite significant post-crisis cost cutting and restructurings, most banks still struggle to post returns that exceed their cost of capital. How will global banks respond to regulatory and return-on-equity pressures? Broadridge brings a unique perspective on utility models and offers a vantage point on the path forward for a post-trade utility, given our five decades of serving capital markets in trade processing and related functions.
Regulation is transforming the capital markets industry, and pressures are set to intensify over the next five years. As a result, many banks will struggle to generate returns that beat their cost of equity capital.
Broadridge partnered with Institutional Investor to survey 150 of the world’s leading equity analysts on the pressures and opportunities that lie ahead for investment banks through 2020.
Our study, “Restructuring for Profitability,” provides an inside look at equity analysts’ predictions for global investment banks.
Will regulations continue to persist or intensify?
What is the future outlook for RoE?
Will banks struggle to beat their cost of capital?
Are cost-control and restructuring still the answer to gaining RoE?
Charting a Path to a Post-Trade Utility
Over the next five years, new regulations and market structure changes could drive down return-on-equity by up to 5 percentage points. The current cost paradigm is simply not sustainable; that’s why a utility model is garnering interest. Discover how a post-trade utility is a natural starting point to mutualize costs, streamline compliance, deliver innovation and create network leverage.
Broadridge and Institutional Investor partnered to deliver a first-of-its kind survey of equity analysts covering investment banks globally.
Read about the critical issues affecting the industry and profitability, and how adopting new technology in the back office and middle office, re-engineering processes within these functions, and similar transformational initiatives may be the key to restoring profitability.