MCKinsey said that aftermath of credit crisis banking sector will rebound strongly and double profits within eight years.
The report said banking profits will continue to grow faster than gross domestic product and in 2016 the sector's total market capitalization will be $12 trillion (€8 trillion) higher than it is today.
The report, entitled 'What’s in store for global banking' said: “With the midsummer credit crunch taking its toll, 2007 turned into a bleak year for the world’s big financial institutions and 2008 may not be much better. As executives respond to the immediate pressures however, they should maintain a clear perspective on the long-term outlook, which in our view is considerably brighter.”
McKinsey predicts banking revenues will grow by 7.5% a year from 2006 to 2016 and by the end of 2016 the sector will generate $5.7 trillion in revenues and $1.8 trillion in after-tax profits - more than twice the levels at the end of 2006. Roughly half of the growth in revenues will come from emerging markets, led by Russia and China.
The report said banking profits will continue to grow faster than gross domestic product and in 2016 the sector's total market capitalization will be $12 trillion (€8 trillion) higher than it is today.
The report, entitled 'What’s in store for global banking' said: “With the midsummer credit crunch taking its toll, 2007 turned into a bleak year for the world’s big financial institutions and 2008 may not be much better. As executives respond to the immediate pressures however, they should maintain a clear perspective on the long-term outlook, which in our view is considerably brighter.”
McKinsey predicts banking revenues will grow by 7.5% a year from 2006 to 2016 and by the end of 2016 the sector will generate $5.7 trillion in revenues and $1.8 trillion in after-tax profits - more than twice the levels at the end of 2006. Roughly half of the growth in revenues will come from emerging markets, led by Russia and China.
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