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Dec 23, 2014 7:58:00 AM

Banking on the Future – Key Considerations for Bank Growth in 2015

2014 saw more than a few big developments in banking, from the launch of Basel III regulations to issues with cyber security and increasing use of big data as a strategic planning tool. Along with new regulations, capital requirements and technology advancements, 2014 saw a proliferation of growth efforts start to reshape the banking landscape.
 
Factors like improved acquisition multiples, robust capital reserves, and a shrinking gap between valuations and actual purchase prices have created an environment that is more favorable to banks pursuing growth through efforts like branch expansion, mergers & acquisitions (M&A) and initial public offerings (IPO).
 
As we look toward 2015, the HORNE team has compiled a few key considerations to help you prepare to act with agility and confidence when opportunity arises.

 

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Topics: Interest Rates, Basel III, IPO, M&A

Aug 28, 2014 11:57:00 AM

Creating Market Value

“If you aren’t growing, you’re dying” is a familiar phrase in the banking industry. It begs an important question.

Why is growth so important?

The short answer is the way in which growth is a catalyst for positive change. The impact of forward motion is measured in multiple ways, including customer service innovations (e.g., Internet banking), new markets, and new product or service offerings. Of course, the impact is reflected ultimately in the bottom line, by measuring revenue and profitability.

In the banking industry, asset size is the most commonly used metric to evaluate a bank’s growth and success. In fact, asset growth is one of the most influential contributors to increased interest by analysts and investors:

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Topics: Mergers and Acquisitions, IPO