Multichannel banking continues to challenge Europe’s retail banks. As direct channel usage becomes mainstream, the focus is switching from service to sales and value creation. Despite this management focus, direct channel sales growth has been below expectations.
ScotiabankDuring a tumultuous year, Scotiabank did well to increase net profits by 13% and grow assets by 8.6%. At the same time it achieved an admirable 22% return on equity and increased dividends by 16%. Total shareholder return was 12%, resulting in 13 consecutive years of positive returns.
Global loan volumes plummeted to new lows in October, according to data provider Dealogic. At the same time pricing has reached record highs. Just $95bn worth of syndicated loans were signed in October, the lowest amount since January 2004. This compares with October 2007, when $423bn worth of loans were signed.
The US government has agreed to pay $700bn to shore up the current financial system. European governments are enacting capital investments into their financial systems of similarly huge magnitudes. As part of this unprecedented government intervention, many are calling for restrictions on top banking executives’ pay. By John Thanassoulis.
Ecobank BurkinaOperating in one of the world’s most deprived regions, Ecobank Burkina managed to eke out a modest net profit in 2007. Profit growth fell by 3% last year, but the bank did manage to grow its assets by 26%. Return on equity also fell slightly on 2006, to 30% from 33%, and non-performing loans grew by two percentage points to 8%.
As world leaders meet to discuss the future of capitalism, banks need to find new ways of financing trade.It is a moot point whether the leaders of the Global 20 (G20) industrialised nations achieved anything tangible, beyond increasing their carbon footprint, in Washington last month.
Baiduri BankBaiduri Bank Group, which comprises Baiduri Bank and Baiduri Finance for automobile hire-purchase and leasing, initiated a three-pronged strategy for boosting products and income in 2007 and income from fee, commission and service charges plus foreign exchange profit and other income which have increased significantly by 67.1% to BN$26.4m ($18.3m) in 2007.