The road ahead for German banks is uncertain. A number of significant trends are shaping new traffic patterns, putting pressure on all banks—even those that weathered the financial crisis and are in good shape today. Banks that do not act to mitigate the impact of these trends will continue to struggle over the next three years.
Using detailed data provided by Deutsche Bundesbank, McKinsey has taken an in-depth look at this changing market. Because of its unique structure, it is challenging to make one-to-one comparisons between the German banking sector and those of other countries. Using nine banking segments as a reference, McKinsey has developed an extensive fact base, which is used in this report to assess the implications of key trends on banks’ profitability.