We work with senior leaders at U.S. based regional banks to benchmark financial performance at a detailed level against peers and identify opportunities to improve operating efficiency. We help clients make informed decisions, focusing attention, resources, and action where they are most needed.
Focused Insights for Strategic Decision Making
Our Enterprise Financial Benchmarking Study, which has been in place for over 5 years, allows our clients to make informed decisions at all levels of the enterprise, focusing attention, resources, and action where they can be most effective. We partner with clients to help them understand what drives operating efficiency relative to peers and how well their employee rewards align with financial performance across different areas of the organization. We work with clients to apply insights from the study and analyze incentive pool funding and pay decisions, review firms’ support models, model new business initiatives, and track progress towards strategic goals over time.
Banks Participate in Enterprise Benchmarking
Trillion in Balance Sheet Assets Represented
Billion in Net Revenue Represented
Total Full Time Employees with Reported Results
Identify the Drivers of Operating Efficiency
Our study highlights a bank’s areas of greatest variance to peers in operating efficiency, enabling managers to focus on gains in the areas with the strongest potential impact on results. With a level of business detail unavailable through other sources, we can analyze operating efficiency across individual business areas, assess whether variances are driven by revenue productivity, costs, or staffing levels, and determine appropriate targets for operating performance, weighted to a bank’s own unique mix of businesses.
To view a sample covering operating efficiency analysis from our management summary, please click here.
Balance Pay with Performance
The study's insights enable analysis of a bank’s largest and most controllable expense – compensation – in the context of financial performance, allowing participants to assess if their overall pay levels are aligned with financial results. Further, since firms have the ability to view peer benchmarks for per capita compensation and revenue productivity side-by-side within each business area, managers have the information necessary to allocate pools and merit budgets more effectively to the areas that are driving results. For developing businesses, these metrics can also provide a meaningful measuring stick for tracking the progress of a business through its development plan from investment stage to maturity.
To view a sample covering divisional pay and performance from our management summary, please click here.
Assess the Relative Cost of Support
We provide key benchmark metrics for the cost and size of centralized infrastructure teams and for each functional area of support compared to peers. Infrastructure is analyzed relative to enterprise revenue production, asset scale, and size of the front office in order to assess the efficiency of the platform from every perspective.
To view a sample covering infrastructure analysis from our management summary, please click here.
Advanced Financial Benchmarking Study Structure
In an ever-changing environment, our comprehensive and granular coverage can be adapted to match your view of the world. We provide customizable business hierarchies to reflect your bank’s unique structure, ensuring that normalized results will be meaningful to managers. The business & support units that we cover include, but are not limited to:
- Capital Markets
- Commercial Banking
- Commercial Real Estate
- Middle Market Lending
- Treasuring / Cash Management
- Corporate Banking (Major Market Lending)
- Infrastructure / Centralized Support
- Communications and Marketing
- Corporate Services
- Human Resources
- Risk Management
- Technology and Operations
- Retail Banking
- Auto Finance
- Retail Branch Network
- Small Business Banking
- Wealth & Investment Management
- Asset Management
- Private Banking
- Retail Brokerage
We provide a wide range of metrics to deliver multiple views of productivity, efficiency, and profitability. These metrics are delivered at each level of the structural hierarchy, allowing senior management and business unit heads to examine their performance relative to peers within a recognizable structure. The metrics and calculations included in the study include, but are not limited to:
- Allocated Expenses
- Direct Expenses
- Compensation and Benefit Expenses
- Non-compensation and Benefit Expenses
- Payout Ratio
- Direct Comp and Benefits per FTE Head
- Operating Expenses per Head
- Operating Efficiency Ratio
- FTE Headcount
- Infrastructure / Support
- FOBO Ratio
- Expense per Front Office Head
- Expense as % of Revenue
- Expense per $1B of Assets
- Support Staff per $1B of Assets
- Productivity / Profitability
- Net Revenue per FTE and per Producer
- Operating Profit per FTE Head
- Operating Profit Margin
- Net Interest Income
- Fee Income