Opportunities for corporate banking in Europe - The McKinsey Quarterly - corporate banking credit crunch - Financial Services

Continuing turmoil in global capital markets after the credit crunch of mid-2007 has clouded the short-term outlook, especially in investment banking. We believe, however, that corporate banking in Europe will benefit from several profitable growth areas over the next 18 months and that shrewd players should position themselves accordingly.

Exhibit 1: While traditional lending still tends to be a ‘loss leader’ for many European banks, some run their core lending businesses at a proﬁt.
Exhibit 2: Payments and deposits contribute signiﬁcantly to corporate-banking revenues, but banks differ strikingly in how much revenue they generate from these products.
Exhibit 3: To increase capital market revenues, banks should aspire to match the performance levels of their leading peers and focus on the most attractive product areas.
Exhibit 4: Cross-selling models work most effectively when focused on a few clearly positioned products.
Exhibit 5: Cross-selling can be successful even with many clients per relationship manager.