Unsatisfactory results are increasingly compelling banks to engage in strategic planning and benchmarking, based on consistent targets, in all business divisions. In many cases, however, there are no multi-year forecasts which can be used to compare the expected future results with the minimum requirements. zeb/ helps banks to identify these earnings gaps and to define any necessary measures to close them.
We apply the following procedure:
- In the first step, we simulate the expected earnings situation of the individual divisions for the next five years.
- On the basis of this simulation, we identify an earnings gap and use it as a benchmark for planning any necessary measures.
- Then, we analyze the areas with the greatest earnings and cost leverage. In addition to sales and internal processes, this can also include treasury or the analysis of external exposure and cost drivers.
- Using these analyses, we develop a master plan for all of the bank's divisions.
The master plan defines how your bank can improve its earnings situation in the medium term.