A new bottom line for banks ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

DELIVERING ACTIONABLE INSIGHTS ON THE DAY’S NEWS As only McKinsey can Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities The great banking transition In the news • Cautiously optimistic. As seen in Reuters, a gloomy period for dealmaking at US investment banks may be ending. After a 16% plunge from the prior year in investment-banking revenue in the third quarter of 2023, banking leaders hope to see a boost from a pickup in possible mergers, takeovers, and initial public offerings—particularly after announcements by a pair of US multinational oil and gas companies of acquisitions of more than $50 billion. Nonetheless, the prospects for growth in 2024 remain muted, at about 5 to 10%, according to an analyst. [Reuters] Globally, banks posted their best ROE and profits in a decade in 2022–23. On McKinsey.com • Bracing for change. The business climate for financial institutions is showing signs of improvement. Yet to sustain better times, the sector now has to manage a “great banking transition” that could transform the industry by reordering its approach to balance sheets, transactions, and distribution, explain McKinsey senior partner Asheet Mehta and colleagues. Explore our full report, Global Banking Annual Review 2023: The Great Banking Transition, to see five priorities for financial institutions to reinvent and future-proof themselves. See how global banking is changing —Edited by Max Berley, senior editor, Washington, DC Was this forwarded to you? Sign up here. Or send us feedback—we’d love to hear from you. Follow our thinking Copyright © 2024 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007