zeb.market.flash. Issue #42: Rebirth of the deposit business

zeb.market flash issue 42

Our overview of current developments in the global banking market

With zeb.market.flash, zeb publishes a quarterly, up-to-date overview of the performance of the world’s largest banks.

The first chapter analyses the current situation of the banking sector. The next chapter looks at the economic situation and key drivers of the banking business. The last chapter in each issue deals with a special topic in detail.  

Click here for the current issue with the following focus topic:
Issue 42 | November 11, 2022 | Rebirth of the deposit business

And here is what this issue is all about:

+5.5% QoQ TSR performance of global top 100 banks

  • After significant corrections in Q2, TSR of the MSCI World stagnated at +0.7% in Q3 2022 – real estate and technology were the lowest performing sectors.
  • Global top 100 banks outperformed the market and all other sectors – driven by U.S. (TSR +11.9% QoQ) and Western European banks (TSR +4.3% QoQ). 

-1.0% YoY expected real GDP growth in Q1 2023 in Germany 

  • The global economic environment further deteriorated in Q3 2022 and a recession in Western Europe and the U.S. in 2023 is highly likely.
  • Record-high inflation rates continue to drive medium- to long-term interest rates upward and force central banks to keep raising their rates.

Rebirth of the deposit business

  • With the end of the zero-interest rate regime, banks are now operating in a new and challenging environment – one of the positive effects from the banks’ perspective is the return of deposit products as a revitalised revenue stream.
  • How did the deposit business fare in the past, how will it develop and what is the current playing field across Europe? Is a “battle for deposits” looming?

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Further readings

zeb is a thought leader in the financial services sector. Below you will find a selection of our current publications.