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Edward Van Eckert
212-419-2525
evaneckert@novantas.com

High Performing Banks Capitalize on Opportunities Created by the Market Disruption to Drive Growth

2009-08-04

New York — As bank earnings results are released, some banks appear to be capitalizing on opportunities created by the market disruption while others are more inwardly focused, according to a report by Novantas LLC and Greenwich Associates.

Novantas LLC, a provider of management consultancy and information services to the financial services industries, has collaborated with Greenwich Associates, a research-based consulting firm in institutional financial services, to determine the status of the banking industry’s current fight for loans, deposits and liquidity.

The research results identify best in class competitors and the actions taken to create superior growth as well as provides deposit and loan benchmarking against peers for the commercial middle market banking segment. The Novantas and Greenwich Associates Middle Market Benchmarking Study compared 11 leading U.S. commercial banks including four of the top 10 and seven of the top 20.

“The research indicates a flight to perceived quality as middle market companies are, in general, less satisfied with their banking relationships,” said Pete Garrison, Managing Director at Greenwich Associates.

As a result of the financial crisis, individual bank performance is highly correlated to the perceived health of the institution. “Wide variances in apparent financial health are creating market opportunities as companies pursue banks perceived to be financially stable and willing to lend,” said Mike Rice, Managing Director at Novantas. “Our work with Greenwich Associates indicates that among all of the factors, communication with customers is a competitive advantage.”

The report finds that overall loan portfolio growth were negative while deposit portfolio growth varied significantly across the banks. The study indicates only moderate correlation between loan and deposit portfolio performance.

“Bank earning results as well as performance documented in our benchmarking program confirm that in today’s difficult economic environment, some banks are capitalizing on opportunities created by the market disruption,” said Don Raftery, Managing Director at Greenwich Associates. “High performing banks are exhibiting the right combination of behaviors, providing reassurance, and telling their story in ways that are driving loan and deposit growth.”

Novantas and Greenwich Associates will review the results of the Q2 2009 Middle Market Benchmarking Study in August.

Novantas is the acknowledged leader in customer science and revenue strategy in the financial services industry. The Firm specializes in investigating and interpreting customer needs, attitudes and behaviors in ways that help companies to refine marketing decisions, customer strategies, and sales and service activities. For more information on Novantas, please access www.novantas.com

Greenwich Associates is the leading international research-based consulting firm in institutional financial services. Greenwich Associates’ studies provide benefits to the buyers and sellers of financial services in the form of benchmark information on best practices and market intelligence on overall trends. Based in Stamford, Connecticut, with additional offices in London, Toronto, Tokyo, and Singapore, the firm offers over 100 research-based consulting programs to more than 250 global financial-services companies. Please visit www.greenwich.com for more information.