Sterilized extract from an internal project based on available public data and focused on both Top 19 European Banking Groups and on Top 10 Italian Banking Groups European Banking Groups Organizational Benchmark and related Capital Allocation 6/2015 Sole author: Massimiliano Fuccio
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European Banking Organizational and Capital Allocation Benchmark 6-2015
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Sterilized extract from an internal project based on available public data and focused on both Top 19 European Banking Groups and on Top 10 Italian Banking Groups
European Banking Groups Organizational Benchmark and related Capital Allocation
6/2015
Sole author: Massimiliano Fuccio
This document analyzes the Organization Charts of the first 19 European
Banking Groups* and their Allocated Capital to each operating Business Units
(also showing historical trends in terms of organization charts and
Summary
2
of Banking-Groups/Business-Units profitability)
Corporate Centers and internal Bad Banks BUs are not the focus of this
document
* Ranking by Total Assets as of 12/31/2014
Agenda
Benchmark results
Organizational Charts and key data for 2010, 2012 and 2014 of the Top European
Banking Groups
3
Banking Groups
Allocated Capital by Business Unit of the Top European Banking Groups and of the 5
Organizational Macroclasses identified
Methodology for the Benchmark (1 of 2)
• Identification of the Top 19 European Banking Groups ranking by Total Assets as of 12/31/2014 using Annual Reports as sources
• Reconstruction of organization charts of the top 19 European Banking Groups (that under no circumstances were directly explained at the level of operational activities present in each Business Unit) using 2010-2012-2014 Annual Reports, 2010-2012-2014 Financial Reviews and Analysts Presentations for the period 2010-2015 as sources
• Exclusion from the sample of the main Spanish banks (Santander and BBVA) because they present data by Geographical Area (at the level of supranational aggregates) and not by Business Unit
UK
France
Sweden
Netherlands
Switzerland
Germany
ItalySpain
4
Geographical Area (at the level of supranational aggregates) and not by Business Unit
• Identification of Business Units Allocated Capital and Gross Result as of 12/31 of 2010, 2012 and 2014when data at 12/31 were not present, data at 09/30 were used
• Identification of organizational trends for the period 2010–2014
• Identification of organizational macroclasses (6 in particular) with common organizational characters in terms of Business Units aggregates
Ranking of European Banks by Total Assets
(Data at12/31/2014 in Bln€)
Key
Presence of Allocated Capital data by BU
Presence of RWA data allocated by BU
Absence of Allocated Capital data by BU (only by Geographical Area)
2.177 2.078
1.763 1.748 1.709 1.353 1.308 1.266 1.233
1.101 993 884 844 766 680 669 646 632 558
Methodology for the Benchmark (2 of 2): Sample of European Banks analyzed
8,4%0,2%
6,9% 0,1% 2,9%-5,6% 5,5% 5,7%
3,6% 2,6%7,8% 4,6% 5,3% 4,9% 12,4% 3,3% 1,2%
UNUSUAL DATA: On June 30, 2014, BNP has reached a global agreement on the investigation in progress relating to transactions in US dollars with parties subject to US sanctions. In 2013 the return on equity was 5.5% and ROTE was 6.4%
ROTE 2014
UK
France
Sweden
Netherlands
Switzerland
Germany
ItalySpain
5
ItalyUK France Sweden ItalyNetherl.FranceFrance FranceUK UK GermanyGermany Switzerl. Switzerl.Spain Spain
UK
Sample analyzed
• The Top 19 European Banks by Total Assets have been analyzed (at 12/31/2014)• 17 Banking Groups out of 19 have been selected for the following reasons:
The Allocated Capital by Business Unit was explicitly given [14 out of 19 Banks]There was a RWA figure by Business Unit (The Capital Allocated to the BUs is in this case the Total Capital allocated to the Business Units using the same proportions of RWA by BU on total RWA) [3 out of 19 Banks]
• The 2 Spanish banks (Santander and BBVA) have been excluded because data were presented by Geographical Area (not by BU)
Netherl.
Corporate &
% breakdown of Allocated Capital by Business Unit for the first 17 European Banks by Total Assets
The organizational macroclasses
• Identification of 6 organizational macroclasses including the Top 17 European Banking Groups :
1) The main organizational macroclass (34% of Total Assets of the sample) is characterized by three main BUs (Retail, PB & AM, Corporate & Investment Banking) and in some cases an additional BU including Specialized Financial Services (Consumer Finance, Asset Finance; Credit Card, ...)
2) The second organizational macroclass (17% of Total Assets) is characterized by 4 BUs (Retail, PB & AM; Corporate Banking; Investment Banking)3) The third organizational macroclass (12% of Total Assets) is characterized by 2 BUs (Retail, PB & AM + Corporate Banking + Investment Banking)4) The fourth organizational macroclass (8% of Total Assets), the model of the Swiss Top Players, is characterized by two major BUs (PB & AM; Investment
Banking) and for UBS also a BU for Retail + Corporate banking 5) The fifth organizational macroclass (8% of Total Assets), the model of the Dutch Top Players, is characterized by two main BUs (Retail + PB & AM; Corporate
Banking + Investment Banking) and for Rabonbank also a BU for Leasing and Real Estate6) There is a last organizational macroclass (20% of Total Assets) where there is no dominant organization model
% of
Benchmark results: organizational macroclasses(1 of 2)
Average
UK
France
Sweden
Netherlands
Switzerland
Germany
ItalySpain
6
Retail
Retail & Private banking e Asset management
Retail, Private & Corporate Banking
Retail and Corporate Corporate
Investment Banking
Corporate & Investment Banking
Corporate & Investment Banking & Private banking e Asset management
Private banking e Asset management
Specialized financial services
France BNP Paribas 49,3% 28,7% 15,8% 6,1%
UK Lloyds Banking Group 36,5% 53,1% Divested 10,5%
Benchmark results: organizational macroclasses(2 of 2)
UK
France
Sweden
Netherlands
Switzerland
Germany
ItalySpain
Organizational charts of the 5 macroclasses
The organizational macroclasses
• Identification of 6 organizational macroclasses including the Top 17 European Banking Groups :
1) The main organizational macroclass (34% of Total Assets of the sample) is characterized by three main BUs (Retail, PB & AM, Corporate & Investment Banking) and in some cases an additional BU including Specialized Financial Services (Consumer Finance, Asset Finance; Credit Card, ...)
2) The second organizational macroclass (17% of Total Assets) is characterized by 4 BUs (Retail, PB & AM; Corporate Banking; Investment Banking)3) The third organizational macroclass (12% of Total Assets) is characterized by 2 BUs (Retail, PB & AM + Corporate Banking + Investment Banking)4) The fourth organizational macroclass (8% of Total Assets), the model of the Swiss Top Players, is characterized by two major BUs (PB & AM; Investment
Banking) and for UBS also a BU for Retail + Corporate banking 5) The fifth organizational macroclass (8% of Total Assets), the model of the Dutch Top Players, is characterized by two main BUs (Retail + PB & AM; Corporate
Banking + Investment Banking) and for Rabonbank also a BU for Leasing and Real Estate6) There is a last organizational macroclass (20% of Total Assets) where there is no dominant organization model
Business Units Allocated Capital for the 5 organizational macroclasses identified
• From the analysis of Business Units Allocated Capital for each of the 5 organizational macroclasses identified, it possible to infer that:the macroclass 1 has a prevalence of retail banking in terms of Allocated Capital (47.0% of the total), followed by Corporate banking + Investment banking (37.5% of total)the macroclass 2 has a prevalence of Investment banking in terms of Allocated Capital (41.6% of the total) followed by (~ equal weight) Corporate banking (29.7% of the total) and Retail Banking (26.3% of total )the macroclass 3 has a high prevalence of Retail Banking in terms of Allocated Capital (67.6% of the total), followed by Corporate b. (32.4% of total)the macroclass 4 has a prevalence of Investment Banking in terms of Allocated Capital (52.7% of the total) followed by Private Banking & Asset Management (32.4% of total)the macroclass 5 has a prevalence of Retail Banking + Private Banking and Asset Management in terms of Allocated Capital (52.7% of the total) followed by Corporate Banking + Investment Banking (40.9% of total)the Business Units including Specialized Financial Services (Consumer Finance, Asset Finance, Credit Card, ...), if present, is less important in terms of Allocated Capital (up 6.4%)
Benchmark results: Allocated Capital by macroclass
UK
France
Sweden
Netherlands
Switzerland
Germany
ItalySpain
8
Retail
Retail & Private banking e Asset management
Retail, Private & Corporate Banking
Retail and Corporate Corporate
Investment Banking
Corporate & Investment Banking
Corporate & Investment Banking & Private banking e Asset management
Private banking e Asset management
Specialized financial services
Macroclass 1 47,0% 37,5% 9,3% 6,2%
Macroclass 2 26,3% 29,7% 41,6% 2,4%
Macroclass 3 64,3% 35,7%
Macroclass 4 11,3% 52,7% 36,1%
Macroclass 5 52,7% 40,9% 6,4%
% breakdown of Allocated Capital by Business Unit for the 5 organizational macroclasses identified
MacroclassThe Allocated Capital by Business
Unit for each macroclass has been calculated as the average of the weight of Business Units Allocated Capital of each Bank
included in the macroclassweighted with the relevant Total Assets at 12/31/2014
Risultanze del benchmarkHistorical RoE and RoTE
Investment Banking
Private Banking &
Asset Management
Organizational chart macroclass 2
Group Executive Committee - Board of Directors
Corporate Banking
Retail Banking
Organizational chart macroclass 1
Group Executive Committee - Board of Directors
Servizifinanziari
specializzati
Corporate Banking + Investment
Banking
Private Banking &
Asset Management
Retail Banking
UK
France
Sweden
Netherlands
Switzerland
Germany
Italy
Benchmark results: profitability of organizational macroclasses (1 of 2) Spain
1)The Swiss model (organizational macroclass 4), that almost neglects Retail and Corporate Banking and it is mostly focused on Investment Banking and on Private Banking and Asset Management, is characterized by the highest historical profitability (2010-14 RoTE: 8.5%)
2)The Dutch model (organizational macroclass 5) is second in terms of profitability (2010-14 RoTE: 6.8%) and combines Retail with Private Banking and Asset Management and Corporate Banking with Investment Banking
3)The organizational macroclass 3 is in third place in terms of profitability (2010-14 RoTE: 6.1%) with Retail Banking as a BU and all the remaining operating areas ( Private Banking and Asset Management, Corporate Banking and Investment Banking) a a second BU
4)The organizational macroclass 2 is in fourth place in terms of profitability (2010-14 ROtE: 3.6%) with 4 autonomous BUs (Retail Banking, Private Banking and Asset Management, Corporate Banking and Investment Banking)
Profitability of the organizational macroclasses identified: the ranking
• There are 3 organizational macroclasses that shows consistency in terms of high profitability among component Banks:
The Swiss model (organizational macroclass 4) that almost neglects Retail and Corporate Banking and it is mostly focused on Investment Banking and on Private Banking and Asset Management (2010-14 Rote: 8.5%)The Dutch model (organizational macroclass 5) that combines Retail with Private Banking and Asset Management and Corporate Banking with Investment Banking (2010-14 Rote: 6.8%)The organizational macroclass 3 with Retail Banking as a BU and all the remaining operating areas ( Private Banking and Asset Management, Corporate Banking and Investment Banking) a a second BU (Rote 2010-14: 6.1%)
Macroclasses profitability
2014 Pre-Tax RoRAC by Business Unit of the Top European Banks and of the 5 Macroclasses Identified
Benchmark results: 2014 Pre-Tax RoRAC by BU of the Top European Banks and of the 5 macroclasses identified
UK
France
Spain
Sweden
Netherlands
Switzerland
Germany
Italy
Retail
Retail & Private banking e Asset management
Retail, Private & Corporate Banking
Retail and Corporate Corporate
Investment Banking
Corporate & Investment Banking
Corporate & Investment Banking & Private banking e Asset management
Private banking e Asset management
Specialized financial services
France BNP Paribas 16,94% 16,40% 25,96% 34,24%
UK Lloyds Banking Group 22,98% 9,44% 21,97%
Germany Deutsche Bank 9,26% 13,49% 15,91% 20,44%
Sweden Nordea Group 17,83% 18,94% 60,91%
Italy UniCredit 22,39% 0,01% 0,64%
Italy Intesa Sanpaolo 18,69% 25,40% 105,63%
UK HSBC Holdings 17,66% 12,96% 7,31% 19,29%
UK Royal Bank of Scotland 17,18% 17,50% -5,83% 10,83%
France Societe Generale 14,71% 18,78%
11
The average pretax RoRAC by BU for each Organizational
Macroclass has been obtained as average Pretax RoRAC of all
Banks composing the Macroclass weighted with their
2014 Allocated Capital
Macroclasse 1
Macroclasse 2
Macroclasse 3
Macroclasse 4
Macroclasse 5
France Societe Generale 14,71% 18,78%
France Groupe BPCE 9,78% 11,56%
Switzerland UBS 36,73% -0,62% 47,35%
Switzerland Credit Suisse Group 8,57% 21,19%
Netherland Rabobank Group 11,50% 11,82% 7,97%
Netherland ING Bank 20,43% 17,30%
France Credit Agricole 83,04% 15,48% 97,31% 8,11%
Germany Commerzbank 14,14% 17,57% 16,10%
UK Barclays 37,02% 23,74% 33,90%
Retail
Retail & Private banking e Asset management
Retail, Private & Corporate Banking
Retail and Corporate Corporate
Investment Banking
Corporate & Investment Banking
Corporate & Investment Banking & Private banking e Asset management
Private banking e Asset management
Specialized financial services
Macroclass 1 18,2% 13,6% 30,1% 24,3%
Macroclass 2 17,5% 13,4% 5,2% 16,8%
Macroclass 3 11,5% 14,6%
Macroclass 4 36,7% 6,2% 32,7%
Macroclass 5 17,2% 15,2% 8,0%
Agenda
Benchmark results
Organizational Charts and key data for 2010, 2012 and 2014 of the Top
European Banking Groups
12
European Banking Groups
Allocated Capital by Business Unit of the Top European Banking Groups and of the 5
Organizational Macroclasses identified
Organizational chart 2010
Organizational chart 2012
Key data 2010
1 of 19) HSBC 2010 vs 2012 vs 2014
Key data 2012
Income bef. taxes (in $Mil)
Allocated capital(in $Mil) [Data non available and at its place has been used TotalCapitalallocated to BUs based on their RWAs]
Group Executive Committee - Board of Directors
Global Private BankingGlobal Banking and MarketsCommercial BankingRetail Banking and
Wealth Management
Group Executive Committee - Board of Directors
Global Private BankingGlobal Banking and Markets
Commercial BankingPersonal Financial Services
•Retail banking services•Wealth Management Solutions & Financial Planning through investment and wealth insurance products manufactured by in-house partners and third party providers to mass affluent and emerging affluent customers
•Financing & direct banking•Payments and cash manag.• International trade•Treasury•Capital markets & advisory(Via GB&M)
•Commercial cards• Insurance
•Global Markets (Treasury & Secondary marketsservices on alla securities)
•Global Banking (ECM, DCM & Corp.Finance and transaction services)
•Global AssetManagement
•Principal Investments
Corporate(L.Corporate
& Mid)
BusinessBanking (SME)
Global Private Banking
Global Banking and Markets
Commercial Banking
Retail Banking and Wealth
Management
Global Private Banking
Global Banking and Markets
Commercial Banking
Personal Financial Services
1.054
3.785
2,3%
9.536
53.686
33,0%
6.090
50.829
31,3%
3.518
54.264
33,4%
•Private Banking• Investment Management (advisory & investment services and brokerage across asset classes)
•Private Wealth Solutions inheritance planning, trustee and other fiduciary services designed to protect wealth
Global Private BankingGlobal Banking and MarketsCommercial BankingRetail Banking and
Wealth Management•Credit and Lending• International trade and receivables finance
•Payments and CashManagement
• Insurance and Investments
•Capital markets & advisory (Via GB&M)
Group Executive Committee - Board of Directors
Global Private BankingGlobal Banking and MarketsCommercial BankingRetail Banking and
Wealth Management
Management
Global Private Banking
Global Banking and Markets
Commercial Banking
Retail Banking and Wealth
Management
1.009
3.494
2,0%
-4%
-8%
626
3.2451,8%
-41%
-38%
-14%
-7%
8.520
64.899
36,7%
-11%
+21%
5.889
80.51243,9%
-38%
-31%
+50%
+24%
8.535
63.017
36,1%
+40%
+26%
8.744
67.45436,8%
+44%
+2%
+33%
+6%
9.575
44.533
25,2%
+172%
-18%
5.651
31.99617,5%
+61%
-41%
-41%
-28%
•Global Markets (Treasury & Secondary marketsservices on alla securities)
•Global Banking (ECM, DCM & Corp.Finance and transaction services)
•Retail banking services•Wealth Management Solutions & Financial Planning through investment and wealth insurance products manufactured by in-house partners and third party providers to mass affluent and emerging affluent customers
•Retail banking services•Wealth Management Solutions & Financial Planning through investment and wealth insurance products manufactured by in-house partners and third party providers to mass affluent and emerging affluent customers
•Credit and Lending• International trade and receivables finance
•Payments and CashManagement
• Insurance and Investments
•Capital markets & advisory (Via GB&M)
•Markets (Treasury & Secondary marketsservices on alla securities)
•Capital financing (ECM, DCM & Corp.Finance and transaction services)
•Securities Services(custody and clearing services)
•Private Banking• Investment Management (advisory & investment services and brokerage across asset classes)
•Private Wealth Solutions inheritance planning, trustee and other fiduciary services designed to protect wealth
•Private Banking• Investment Management (advisory & investment services and brokerage across asset classes)
•Private Wealth Solutions inheritance planning, trustee and other fiduciary services designed to protect wealth
Income bef. taxes (in $Mil)
Allocated capital(in $Mil) [Data non available and at its place has been used TotalCapitalallocated to BUs based on their RWAs]
Income bef. taxes (in $Mil)
Allocated capital(in $Mil) [Data non available and at its place has been used TotalCapitalallocated to BUs based on their RWAs]
•Corporate Banking (Financing)•Advisory and Capital Markets (Corporate Finance; Fixed Income; Global Equities & Commodity Derivativ.; Structured Finance )
Organizational chart 2010
Organizational chart 2012
3 of 19) Credit Agricole 2010 vs 2012 vs 2014
Key data 2010
Group Executive Committee - Board of Directors
Asset manag., insurance & privat.bank.
Specialisedfinancial services
International retail
bankingLCL**C.A. Regional Banks(25%*)
•Retail bank. for individual& small busin. & localauthorities
•Corporate bank.for SME
•Private Banki.
•Retail bank for individual
•Retail b. for small busin.
•Corporate bank.for SME
•Private Banking
•Asset manag. (BFT & Amundi)
•Crédit Ag. Assurances
•Private Bank to high net worthsegment (BGPI & Cr. Ag.Suisse)
•Consumer Finance
•Leasing & Factoring
•CariparmaFriulAdria(Italy)
•Greece•Morocco•Egypt•Polland
Corporate and investment banking
Specialised business linesRetail banksRetail Banking in France
Group Executive Committee - Board of Directors
Specialised business linesRetail banksCorporate and Specialised
•PrivateEquity
•C.A. Immobilier
•Uni-Editions
Financing activities
Asset man., insurance & privat.bank
Internat.Retail
Banking
Corporate &Investment
Banking
Specialisedfinancial services
Financing activities
Retail Banking in
France
1.821
6.10019,5%
319
3.50011,2%
2.464
9.70031,1%
925
4.00012,8%
-749
5.20016,7%
5.783
2.7038,7%
Asset man., insurance & privat.bank
Internat.Retail
Banking
Corporate &Investment
Banking
Specialisedfinancial services
Specialisedbusin. &
subsidiaries
Retail Banking in
France
Key data 2012
•Equity Brokerage and Derivatives division
•Fixed Income division•Structured Finance •Structured Finance•Coverage and Investment Banking (IB Advising & Commercial banking for large corporates,midcorporates and financial institutions)
• Investment banking•Asset-backed lending•Commercial banking for French or Interna. large corp.,mid corp. and local authorities
•Retail bank. for individual& small busin. & localauthorities
•Corporate bank.for SME
•Private Banki.
•Retail bank for individual
•Retail b. for small busin.
•Corporate bank.for SME
•Private Banking
•Retail bank. for individual& small busin. & localauthorities
•Corporate bank.for SME
•Private Banki.
•Capital markets• Investment banking•Asset-backed lending•Commercial banking for French large & mid corp. and French local authorities in cooperation with C.A. Regional Banks
Income bef. taxes (in €Mil)
Allocated capital (in €Mil)
Income bef. taxes (in €Mil)
Allocated capital (in €Mil)
Organizational chart 2010
Organizational chart 2012
Income bef. taxes (in £Mil)
Allocated capital(in £Mil)
Key data 2010
Group Executive Committee - Board of Directors
Barclays Africa Retail Wealth & CorporatingEurope Retail & UK Retail &
•UK RetailBanking
•Woolwichmortgages
•Assicurativo& Previdenziale
989
3.900
12,6%
Barclays Capital
Barclay--cardAbsaBarclays
AfricaInvestm. Manag.
Barclays Wealth
Barclays Corporat.
Western Europe Retail
Banking
UK Retail Banking
-139
1.800
5,8%
-631
4.850
15,7%
163
550
1,8%
67
3.600
11,7%
188
800
2,6%
616
1.200
3,9%
791
3.200
10,4%
4.780
10.950
35,5%
Barclays Capital
Barclay--card
Africa Retail and Business Banking
Wealth & Investment
Management
Corporat. Banking
Europe Retail & Business
UK Retail and
Business
4 of 19) Barclays 2010 vs 2012 vs 2014
Group Executive Committee - Board of Directors
Barclays Capital
Barclays Africa
Investm. Manag.
Barclays Wealth
Barclays Corporate
Global Retail Banking
Barclay--card Absa
Western Europe Retail
Banking
UK Retail Banking
Key data 2012
• Internat. paymentsbusiness (22 countries throughout the world)
•Retail banking & credit card serv. in Spain,Italy,Portugal & France
•Retail, corporat. & credit card services in Africa & Indian Ocean
•South Africa’s retail, insurance & large corp. banking services
• Investment banking to large corp., government & institutional clients
• Integrated banking solutions to large corp., financial institutions & multinat.
•Wealth manag.nt on private and intermediary clients worldwide
•Through 20 Banque Populaire:Retail banking to individual customersPrivate banking up to high net worth customersSmall business customers banking servicesSMEs and institutional clients commercial banking
• Trough 17 Caisses d'Epargne:Retail banking to individual customers Small business customers banking servicesCorporate & PA commercial banking
•Real estate financing• International retail banking•Life, non-life & protection insurance
•Corporate and Investment Banking:Advisory: M&A, ECM and DCM Structured financingCapital markets on all securities Transaction Banking (cash management, trade finance and correspondent banking)
• Investment Solutions: Asset managementPrivate banking through Groupe BPCE networks, independent financial advisors and direct customers
•Through 18 Banque Populaire:Retail banking to individual customersPrivate bankingSmall business customers banking servicesCorporate and institut. clients commercial banking
• Trough 17 Caisses d'Epargne:Retail banking to individual customers Private banking Small business customers banking servicesCorporate & PA commercial banking
•Real estate financing• International retail banking•Life, non-life & protection insurance
Group Executive Committee - Board of DirectorsCorporate Banking, Investment Management,
Insurance and Financial Services (Natixis)Commercial Banking & Insurance•Wholesale Banking:
Coverage & advisory: M&A, DCM & ECM Vanilla and structured financing Capital markets on all securities Transaction Banking (cash management, trade finance and correspondent banking)
• Investment Solutions & Insurance: Asset managementPrivate banking through Groupe BPCE networks, independent financial advisors and direct customers
•Through 17 Banque Populaire:Retail banking to individual customersPrivate bankingSmall business customers banking servicesCorporate and institut. clients commercial banking
• Trough 17 Caisses d'Epargne:Retail banking to individual customers Private banking Small business customers banking servicesCorporate & PA commercial banking
•Real estate financing• International retail banking•Life, non-life & protection insurance
Income bef. taxes (in €Mil)
Allocated capital(in €Mil) [Data non available and at its place has been used TotalCapital allocated to BUs based on their RWAs]
Income bef. taxes (in €Mil)
Allocated capital(in €Mil) [Data non available and at its place has been used TotalCapital allocated to BUs based on their RWAs]
Organizational chart 2010
Organizational chart 2012
Income bef. taxes (in £Mil)
Allocated capital(in £Mil) [Data non available and at its place has been used TotalCapitalallocated to BUs based on their RWAs]
Key data 2010
10 of 19) Lloyds B. Group 2010 vs 2012 vs 2014
3.611
15.411
28,0%
127
31.401
57,0%
-5.196
8.277
15,0%
1.145
N.A.
Wealth and InternationalInsuranceRetail
•Retail bank with the following brand: Lloyds TSB, Halifax, Bank of Scotland; Cheltenham & Gloucester
* with the following brands: Lloyds Bank, Bank of Scotland; Scottish Widows; AMC; LDC
3.670
16.522
32,2%
+2%
+7%
3.228
14.89428,2%
-11%
-12%
-3%
-10%
238
28.580
55,6%
+87%
-9%
2.206
23.36444,3%
+1637%
+827%
-26%
-18%
-1.176
6.263
12,2%
-77%
-24%
1.010
4.5988,7%
N.A.
N.A.
-44%
-27%
1.065
N.A.
922
-19%
-13%
-68
8.73416,6%
CommercialBanking
Wealth, Asset Finance and InternationalInsuranceRetail
•Corporate & transaction banking, capital mkts (bonds & syndicated loans), financ. mkts (forEx, interest rate, money mkt & credit) & private equity to SME, Mid mkt, Global Corpo. (Large corp. UK and global clients) & Financial instit.
•Australian and European corporate businesses
Group Executive Committee - Board of Directors
TSB**
Run-off and
Central items
InsuranceConsumer FinanceCommercial
Banking*Retail
International
TSBRun-off &Central items
InsuranceConsumerFinance
CommercialBankingRetail
458
N.A.
•Retail bank with the following brand: Lloyds TSB, Halifax, Bank of Scotland; Cheltenham & Gloucester
•Life, Pensions & Invest. UK
•Life, Pensions & Investm. Europe
•Home Insurance
Asset Finance
•Asset Finance (leasing, specialty lending and consumer finance)
Privatebanking
Asset manag.
Internatio. businesses
•Private bank. (affluent) & Wealth manag. (ultra high net worth) [Lloyds TSB & Bank of Scotland]
•Scottish Widows Invest. Partners
• Ireland corporate business
•Retail Europe & Asia
•Retail bank to personal and small business customers in the UK with the brand: Lloyds TSB, Halifax, Bank of Scotland; Scottish Widows
•Lending, deposits and transaction banking services, capital markets (private placements, bonds and syndicated loans), financial markets (ForEx, interest rate management, money markets & credit) and private equity to UK businesses from SMEs to large corporates and financial institut.
•Long-term savings, investment and protection products in UK
•Home Insurance
•Asset Finance (leasing, specialty lending and consumer finance)
•Credit Cards business
Asset Finance
Credit card
•Assets that are outside of Group’s risk appetite
•Exposures relating to Group Corporate Treasury
•Standalone retail banking business on sale due to EU rules on State aid
** based on some branches of Lloyds TSB in England and Wales, all branches of Cheltenham & Gloucester and the business of Lloyds TSB Scotland
Key data 2014
-7%
2,2%
Income bef. taxes (in £Mil)
Allocated capital(in £Mil) [Data non available and at its place has been used TotalCapitalallocated to BUs based on their RWAs]
Income bef. taxes (in £Mil)
Allocated capital(in £Mil) [Data non available and at its place has been used TotalCapitalallocated to BUs based on their RWAs]
Organizational chart 2010
Organizational chart 2012
11 of 19) ING 2010 vs 2012 vs 2014
Key data 2010
Key data 2012
Income bef. taxes (in €Mil)
Allocatedcapital(in €Mil)
2.316
10.695
31,0%
1.941
4.613
13,4%
1.685
8.881
25,7%
-519
10.362
Retail Banking Benelux
Retail Banking Direct &
International
Insurance EurAsia and
LatAm
Commercial Banking
Retail Banking Benelux
Retail Banking International
Insurance EurAsia excluding
discontinued Commercial
Banking
30,0%
Retail Banking Benelux Retail Banking Direct & International Insurance
•Asset Gathering (FinecoBankItalia, DAB Bank Germany & DAT Bank Austria)
•Consumer Finance
F&SMA Network Poland
• Individuals, families and SMEs in Poland
Private Banking
•Wealth manag. of private customers with medium to high financial resources
•
F&SMA Network Austria
F&SMA Network Germany
F&SMA Network
Italy
Group Executive Committee - Board of Directors
Central Eastern Europe
•Banks in Central and Eastern European countries
Corporate e Invest. Banking
• Internati. Corporates& Itl. LargeCorporates(Financing &Advisory; Markets; Global Transaction Banking)
Asset Manag.
Asset gathering
•A.gatheringwith direct channel & a network of financial advisors on retail customers (in Italy FinecoBank)
Poland
• Individual and institutional customers
Commercial Banking Austria
Commercial Banking Germany
Commercial Banking Italy
* Corporate clients with a turnover exceeding € 3mil and Institutional clients ** corporate customers with revenues exceeding 50 €
•Pioneer Investments
•Pioneer Investments
•Retail•Private Bank.•Corporates & InstitutionalsexcludingLarge Corpor. & Multination. served by CIB)
•Leasing e Factoring
EuropeBanking**PolandAustriaGermanyItaly
-50
1.376
3,7%
32
1.123
3,0%
418
482
1,3%
307
446
11,7%
403
4.367
1,2%
196
294
0,8%
-21%
+1%
193
16.491
44,3%
-92%
-13%
1.695
7.310
19,6%
+98%
+4%+123%
Central Eastern Europe
Corp.te e Invest. Banking
Asset Manag.
Asset gatheringPoland
Commercial Banking Austria
Commercial Banking Germany
Commercial Banking
Italy
666
2.85910,7%
14
2.3618,8%
803
1.1304,2%
230
1470,5%
-43%
-97%
286
2661,0%
+16%
+46%
-8%
-10%
1.802
5.67721,2%
-25%
+834%
-70%
-66%
1.474
7.22526,9%
+73%
-13%
+3%
-1%
• Individuals, families and SMEs in Austria
• Individuals, families and SMEs in Germany
• Individuals, families and SMEs in Italy
•Retail•Private Bank.•Corporates & InstitutionalsexcludingLarge Corpor. & Multination. served by CIB)
•Leasing e Factoring
•Retail•Private Bank.•Corporates & InstitutionalsexcludingLarge Corpor. & Multination. served by CIB)
•Leasing e Factoring
Organizational chart 2010
Organizational chart 2012
Group Executive Committee - Board of Directors
Asset ManagementPrivate Banking
14 of 19) Credit Suisse 2010 vs 2012 vs 2014
Investment Banking
Wealth Management
Clients
Corporate & Institutional
Clients •Advice & financial solutions to ultra-high-net-worth & high-net-worth individuals around the globe private
•clients in Switzerland
•Advice and provider of financial products and services to over 100.000 clients mainly in Switzerland
•Global securities sales, trading and execution
•Prime brokerage •Capital raising •Advisory services•Comprehensive investment research
• Investment solutions and services globally to a wide range of clients, including pension funds, governments, foundations and endowments, corporations and individuals
•Advice & financial solutions to ultra-high-net-worth & high-net-worth individuals around the globe & private clients in Switzerland
•Advice and provider of financial products and services to over 100.000 clients mainly in Switzerland
•Global securities sales, trading and execution
•Prime brokerage •Capital raising •Advisory services•Comprehensive investment research
• Investment solutions and services globally to a wide range of clients, including pension funds, governments, foundations and endowments, corporations and individuals
•Advice & financial solutions to ultra-high-net-worth & high-net-worth individuals around the globe & affluent and retail clients in Switzerland
•Advice and provider of financial products and services to over 100.000 clients mainly in Switzerland
•Global securities sales, trading and execution
•Prime brokerage•Capital raising •Advisory services•Comprehensive investment research
• Investment solutions and services globally to a wide range of clients, including pension funds, governments, foundations and endowments, corporations and individuals
Asset Management
Key data 2014
3.775
9.818
2.002
18.729
1.027
9.853
-2.851
21.350
-4% -43%
-47%
-45%
-1% -8%
-1%
+0%
Key% weight of allocated capital by BU
2014 vs 2012 growth rate 2014 vs 2010 growth rate
Private Banking & Wealth Management
-48%
-9%
+5%
+14%
34,4% 65,6%
31,6% 68,4%
Income bef. taxes (in CHF-Mil)
Average utilized economic capital (in CHF-Mil)
Income bef. taxes (in CHF-Mil)
Average utilized economic capital (in CHF-Mil)
Investment Banking
Organizational chart 2010
Organizational chart 2012
15 of 19) Rabobank 2010 vs 2012 vs 2014
Key data 2010
Key data 2012
Income bef. taxes (in €Mil)
Allocatedcapital(in €Mil)
2.318
8.100
42,6%
238
800
4,2%
1.043
7.400
38,9%
267
1.100
5,8%
Group Executive Committee - Board of Directors
Group Executive Committee - Board of Directors
Netherlands
Real estate
Wholesale banking and internationalretail banking
Domestic retail banking LeasingAsset
management
Real estate
Wholesale banking and international
Domestic retail banking LeasingAsset
management
63
1.600
8,4%
Real estate
Wholesale banking and internationalretail banking
Domestic retail banking
(Netherlands clients)LeasingAsset
management
Wholesale banking Domestic retail Asset
•Mortgage lender•Savings bank • Insurance broker•SME segmentlending
•Food and agri sectorlending
•Payment services
•Mid and Largesegments wholesalebanking in the Netherlands
•Food and agri sectorretail and wholesalebanking abroad
•Private banking•Asset management
•Leasing, factoring and consumer finance in the Netherlands
•Vendor Finance in over 35 countries
•Car-leasing in nineEuropean countries
•Development of residential and commercial properties
•Property financing•Service provision to property investors
•Retail banking to households and Corporate products (lending, risk mangement, transaction products, cash management, leasing, asset finance, custody services) to small, medium and some large corporatesin the following divisions:
•Retail banking to households and Corporate products (lending, risk mangement, transaction products, cash management, leasing, asset finance, custody services) to small, medium in the following divisions:
Banking DenmarkBanking Norway & SwedenBanking Baltic Countries
•Corporate Banking to the largest corporate and institutional customers
•Capital markets (primary and secondary markets & advisory)
•Corporate Banking to Shipping, Offshore and Oil segments
Organizational Charts and key data for 2010, 2012 and 2014 of the Top European
Banking Groups
30
Banking Groups
Allocated Capital by Business Unit of the Top European Banking Groups and of
the 5 Organizational Macroclasses identified
• The main organizational macroclass (34% of Total Assets of the sample) is characterized by three main BUs (Retail, PB & AM, Corporate & Investment Banking) and in some cases an additional BU including Specialized Financial Services (Consumer Finance, Asset Finance; Credit Card, ...)
Organizational chart macroclass 1
Group Executive Committee - Board of Directors
Specialized financial services
Corporate Banking + Investment Banking
Private Banking & Asset Management Retail Banking
21,2%
34,9%
15,8%12,7%
9,7%1,5% 4,6%
9,3%
6,1% 10,5% 11,5%6,2%
80%
90%
100%
Macroclass 1
% breakdown of Allocated Capital to Business Units at 12/31/2014 - macroclass 1
• The fourth organizational macroclass (8% of Total Assets), the model of the Swiss Top Players, is characterized by two major BUs (PB & AM; Investment Banking) and for UBS also a BU for Retail + Corporate banking
Macroclass 4
% breakdown of Allocated Capital to Business Units at 12/31/2014 - Macroclass 4
• The fifth organizational macroclass (8% of Total Assets), the model of the Dutch Top Players, is characterized by two main BUs (Retail + PB & AM; Corporate Banking + Investment Banking) and for Rabonbank also a BU for Leasing and Real Estate
Macroclass 5
% breakdown of Allocated Capital to Business Units at 12/31/2014 - Macroclass 5