Banking cull continues as profits rise

Off-balance sheet income is driving global banks’ Q3 earnings, a McKinsey report has found, but to sustain growth momentum, Asia’s institutions will need to overhaul inefficiencies.

Rising interest rates have contributed to an improved performance by financial institutions over the past 18 months, a report published this month by McKinsey Company, has revealed. However, in the context of heightened competition from nontraditional players and the emergence of private financing channels, the need for banks to pursue cost improvements where possible, has become increasingly vital.

The consultancy firm’s 2023 review of the global banking industry, titled “The Great Banking Transition”, highlights how interest rate hikes and their consequential impact on improved net interest margins have led to topline growth across banking sector profit, with 2023 results landing  $280 billion above achieved profit for 2022....

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222