Investment banks need to rethink profit strategies

Boston Consulting Group says investment banks' return-on-equity could fall to 5% and that the best way to save costs is to reduce salaries, benefits and bonuses.

Boston Consulting Group BCG forecasts that return-on-equity in the investment banking industry could fall to as low as 5% and says overall compensation structures need to be rethought as part of a cost reduction.

In a report issued on Wednesday, BCG highlights the now well-documented constraints within which investment banks are operating a weakening business outlook strict regulations high capital costs and reduced leverage. The Massachusetts-based consulting firm goes on to question whether investment banks can emerge from the crisis...

To continue reading, please login or register for free

Click for more on: bcg | investment banks | investment banking

Print Edition

FinanceAsia Print Edition


  • 2nd Compliance Summit Southeast Asia

    17 August 2017  |  Singapore
    The 2017 Compliance Summit Southeast Asia will take an in-depth look at the key compliance considerations today with a focus on regulation and new ...