A greater focus and selectivity on certain client segments by some of the biggest US corporate banks is creating new opportunities for small and large competitors to step up lending activity and build market share in treasury management. Despite those gains, however, results from the Greenwich Associates 2012 US Large Corporate Banking and Large Corporate Cash Management Studies indicate that the two biggest US banks in asset size – Bank of America Merrill Lynch (BofA Merrill) and JP Morgan – maintain a comfortable lead in market penetration among US companies.
Among US companies interviewed by Greenwich Associates, 84% reported having relationships with JP Morgan and BofA Merrill, earning these banks the top spot among the 2012 Greenwich share leaders in US large corporate banking. Wells Fargo ranks third, followed by Citi in fourth. Barclays and the Royal Bank of Scotland (RBS) are statistically tied for fifth place with 39% and 38% penetration levels, respectively.
“Wells Fargo is one of the larger banks benefitting from the less aggressive strategies of major competitors,” said Greenwich Associates consultant John Colon. “US Bank and PNC Bank are among the beneficiaries on the smaller side.”
In addition to earning the Greenwich share leader designation, JP Morgan also emerged as the 2012 Greenwich quality leader in US large corporate banking. Firms cited as Greenwich quality leaders have distinguished themselves from their competitors by receiving client quality ratings that exceed those of competitors by a statistically significant margin.
Results from the Greenwich Associates 2012 Large Corporate Cash Management Study indicate that regional banks are building market share in corporate cash management.
US Bank and others are taking advantage of strategy shifts undertaken by some of the largest US and international banks in the wake of the financial crisis. “Companies exploring alternatives to their traditional large bank providers are discovering that regional banks like US Bank and PNC Bank can be a source not only of credit, but also of outstanding quality service in cash management and other areas,” said Greenwich Associates consultant Pete Garrison.
The largest banks, however, still lead the pack in market penetration. Nearly two-thirds of large US companies (65%) use BofA Merrill as a cash management provider. That impressive level of market penetration puts the bank a few percentage points ahead of JP Morgan and well ahead of Wells Fargo, which still achieves a hearty 50% penetration level. Rounding out the 2012 Greenwich share leaders in US cash management are Citi at 46%, and HSBC and US Bank, which are in a statistical tie for fifth place.
JP Morgan earns the 2012 Greenwich quality leader designation in US treasury management by receiving client quality ratings that exceed those of competitors by a statistically significant margin.
Cash-flow based metrics now feature prominently alongside traditional revenue measures of business performance in the key figures or financial summary pages of any public company.
With the end of 2017 fast approaching, many finance professionals might be counting down the days with some degree of dread. Year End is just around the corner and with it comes the many long hours accountants will spend going over balance sheets and profit and loss accounts, investigating account irregularities and chasing sign offs.
The EU and US’ shift in accounting standards may bring balance sheet losses and increase credit risk, according to James Elder, director of risk services at Standard & Poor’s (S&P) Global.
The US dollar and debt yields falling on the North Korea missile test, treasury being a top target for cyber criminals and why treasurers aren't into real-time payments all hit the latest headlines in the world of treasury this week. Don't miss our ten top news stories from around the world.