JP Morgan spotlights 'merger' banks
SEARCHING for the next consolidation move among European banks, JP Morgan has come up with a fascinating study of how much profit the retail banks make per customer.
The range is vast, from €19 a year to €344, as the table below shows.
Not surprisingly, the near duopoly they enjoy puts the major two Irish banks firmly at the top.
In Germany, where there are probably too many banks and competition is fierce, profitability is at the bottom of the range.
JP Morgan reckons banks which make a low profit per customer and also fail in cross-selling other products to currentaccount holders could be the most vulnerable with Spain's Banesto, Alliance & Leicester, Germany's Postbank and BPI of Portugal in this category.
By contrast, Lloyds TSB and Spain's Bankinter are very profitable but already sell clients at least three more products, leaving them 'saturated' in terms of improvement.
Profit per client
AIB €344
BoI €339
Bankinter €228
HBOS €223
Lloyds TSB €189
SocGen €145
Barclays €142
Sabadell €138
Popular €124
BES €120
Unicredito €115
BBVA €106
BCP €102
Banco Santander €100
Swedbank €92
BPI €89
DnB NOR €85
Banesto €82
Alliance & Leicester €82
Commerzbank €43
Deutsche Postbank €19
