## Figure 1.25. Global Systemically Important Bank Business Model Challenges

## Source details

**Canonical URL:** [Figure 1.25. Global Systemically Important Bank Business Model Challenges](https://www.imf.org/-/media/files/publications/gfsr/2017/april/chapter-1/figure1-25.pdf)

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### 1. Preprovision Profitability, 2016 (Percent of assets)
- Axis ticks / values shown: 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.9 0.8
- Panel caption: "Banks face a number of profitability and provisioning pressures ..."
- Visual grouping labels: High profit, Mid profit, Low profit
- Marker examples shown in the panel: MS, WFC, BOA, CIT, JPM, GS, UBS, CS, UCG, SAN, DB, BNP, RBS, HSBC

### 2. Preprovision Profit, Revenues, and Costs, 2016 (Percent of assets)
- Revenue axis ticks / values: 0 1 2 3 4 5
- Operating costs axis ticks / values: 0.00 0.5 1.0 1.5 2.0 2.5 3.0 3.5
- Vertical line indicated: "Zero preprovision operating profit (revenues equal costs)"
- Panel caption: "... reflecting a mix of business model challenges ..."
- Example bank positions listed in the panel relative to revenue and costs: HSBC, BNP, DB, CA, BARC, SAN, SG, BPCE, RBS, UBS, UCG, ING, CS, NOR, JPM, BOA, WFC, CIT, GS, MS

### 3. Change in Costs and Headcount, 2011–15
- Change in headcount (percent) axis ticks / values: –40 –20 0 20 40 60 80 100 120
- Change in operating costs/assets (basis points) axis ticks / values: 0.00 0.5 1.0 1.5 2.0
- Panel caption: "... that have been unevenly tackled ..."
- Example bank ordering (from largest headcount reductions to increases or vice versa, as displayed): UBS, CS, UCG, SAN, DB, BNP, RBS, HSBC, BPCE, SG, BARC, ING, CA, NOR, MS, GS, CIT, WFC, BOA, JPM
- Annotation in the panel: "NOR CS ING UCG: (Provisions: 1.5)" and grouping label "Average European GSIB preprovision profit"

### 4. Bank Price-to-Book Ratios and Five-Year Credit Default Swap Spreads, March 2017
- Price-to-book ratio axis ticks / values: –40 –20 0 20 40 60 80 100 120
- Credit default swap spreads (basis points) axis ticks / values: 20 40 60 80 100 120 140 160 180
- Panel caption: "... as suggested by market indicators."
- Shown banks (examples plotted): MS, WFC, BOA, CIT, JPM, GS, UBS, CS, UCG, SAN, DB, BNP, RBS, HSBC

### Bank code key (as presented)
- GSIB = global systemically important bank
- BARC = Barclays
- BNP = BNP Paribas
- BOA = Bank of America
- BPCE = Groupe BPCE
- CA = Crédit Agricole
- CIT = Citigroup
- CS = Credit Suisse
- DB = Deutsche Bank
- GS = Goldman Sachs
- HSBC = HSBC Holdings
- ING = ING Bank
- JPM = JPMorgan
- MS = Morgan Stanley
- NOR = Nordea
- RBS = Royal Bank of Scotland
- SAN = Santander
- SG = Société Générale
- UBS = UBS Group
- UCG = Unicredit
- WFC = Wells Fargo

*Sources: Financial statements and management presentations from banks listed in the note; Bloomberg L.P.; SNL Financial; and IMF staff calculations. Note: In panels 1 to 3, conduct costs have been removed.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2017/april/chapter-1/figure1-25.pdf_