How the Top Banks Do It

Bank DirectorVol. 16 Nbr. 4, October 2006

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Summary


The top 10 finishers in this year's Scorecard - which measures the performance of the 150 largest US banks and thrifts across a range of profitability, capitalization, and asset quality metrics - offer up a surprising mix of business models, geographies, and size. There are three lessons that boards of directors should take from the results of this year's Bank Performance Scorecard: 1. A bank's location and the strength of its regional economy appear to be less important than other factors in determining how well it performs. 2. The value of having a market niche or distinct strategy that sets an institution apart from its competitors. 3. Perhaps because its core products and services have become so highly commoditized, banking is still a business of execution. This year's winner is Corus Bankshares, a Chicago-based commercial bank that jumped all the way up from a 20th-place finish in 2005. Coming in second was Commerce Bankshares Inc. in St. Louis, which improved upon a sixth-place finish in 2005.

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Extract


How the Top Banks Do It

Conventional wisdom has it that banking is a mature business with little room for strategic diversity, but the results of the 2006 Bank Performance Scorecard tell a very different story.

The top 10 finishers in this year's Scorecard-which measures the performance of the 150 largest U.S. banks and thrifts across a range of profitability, capitalization, and asset quality metrics-offer up a surprising mix of business models, geographies, and size.

There are three lessons that boards of directors should take from the results of this year's Bank Performance Scorecard. One is that a bank's location and the strength of its regional economy appea...

See the full content of this document

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