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Cash management: Transaction banking moves centre stage

Both as an attractive, highly profitable business for banks and a provider of increasingly vital services for corporate clients, transaction banking is in the limelight. Euromoney speaks to leading bankers in the sector about market conditions and likely prospects.


Participants in this discussion

Standard Chartered Bank Group
Karen Fawcett (KF, Standard Chartered)

Mark Garvin (MG, JPMorgan)

Andrew Long (AL, HSBC)

Bank of America Merrill Lynch
Dub Newman(DN, BofA Merrill Lynch)

Francesco Vanni d’Archirafi (FVdA, Citi)

Deutsche Bank
Werner Steinmüller (WS, Deutsche)

Brian Stevenson (BS, RBS)

Interviewed by Laurence Neville, Euromoney

During the financial crisis, transaction banking became the star performer within many investment banks as capital markets revenues crashed. Has transaction banking’s star waned within banks as low rates have held back its performance and capital markets revenues have returned?

Andrew Long (AL, HSBC)
AL, HSBC Investment banking and markets can deliver stellar returns on a fairly random basis. Transaction banking returns are more stable. Having said that, most of us have shown a sharp drop in 2009 versus 2008 because of the impact of the global economy and market rate movements – but revenues will come back.

Mark Garvin (MG, JPMorgan)
MG, JPMorgan Banks’ management and shareholders won’t forget the performance of transaction banking in 2008, when against a backdrop of unprecedented turbulence and market disruption it delivered reliable, stable and counter-cyclical results.