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Executive Summary

Regionally, APAC and Americas were affected the most by the lower interest rate environment, partially offset by higher fees. EMEA, on the other hand, outperformed led by better performances in the European markets.

  • Transaction Banking revenues declined YoY in 1H21 driven by decreases in Cash Management, while Trade Finance increased moderately with recovery in trade activities.
  • Deposit Balances continued to increase among Index banks. However, deposit productivity declined further largely due to lower interest rate environments.
  • Transaction Banking headcount remained stable in 1H21, as selective hiring by American banks in Trade Finance was partially offset by reductions made by European banks.
  • Cash Management productivity continued to drop in 1H21 owing to the decline in revenues coupled with a modest decline in headcount. On the other hand, Trade Finance productivity in 1H21 saw a marginal improvement resulting from recovery in revenues.


Methodology
  • Performance is benchmarked against Coalition's Standard Product Taxonomy
  • Analysis includes revenues and deposits from all Institutional clients and Corporates with annual turnover of more than US$1.5bn
  • Adjustments are made to publicly reported performance. Examples:
    • Exclusions: Commercial Cards, Merchant Acquiring
    • Business structure adjustments: Excluding revenues from clients with annual turnover less than $1.5bn and Retail Banking
  • Deposit Productivity is calculated as Liquidity & Balances revenues divided by Average Deposits
  • Coalition Transaction Banking headcount is defined as revenue generating headcount across all levels of seniority
  • Headcount is provided on a full-time-equivalent (FTE) basis covering all Institutional clients and Corporates with annual turnover of more than US$1.5bn
    • Inclusions: Trade Finance and Cash Management include front office headcount across Sales and Product Management.
    • Exclusions: Front Office Administrative Staff, Temporary staff; Contractors and Supporting Functions (e.g. Middle Office and Back Office); Rotating Graduate/Trainees
  • Numbers may not add up due to rounding
  • Percentages are based on unrounded number