How North American Banks Can Revive Shareholder Value

How North American Banks Can Revive Shareholder Value




  • Applicable
  • Overview
  • For Experts


Between 2014 and 2018, only the largest North American banks garnered returns greater than the S&P 500, while many more financial institutions’ growth was inefficient. This authoritative analysis from Boston Consulting Group professionals advises that if these banks want to improve their financial performance, they need to do a lot more than cut costs – they have to transform themselves on several fronts. This report offers useful decision guidelines to financial executives concerned about bank competitiveness.


The performance of most banks in North America has largely tracked the market.

In only a few instances have these financial institutions done better than the S&P 500, which gained an average of 8% per year from 2014 to 2018 in total shareholder returns – dividends plus share price appreciation. Post-2008 regulations have burdened many banks, though some of the more stringent limitations are set to roll back. Nonetheless, banks have a lot of work ahead to improve their shareholder value.

In North America, the most successful banks generated value by raising their tangible book value...

About the Author

The Boston Consulting Group is a leading global advisory firm. 

More on this topic

The Financial Services Guide to Fintech
The Financial Crisis and the Free Market Cure
Response and Responsibility
Creating a More Digital, Resilient Bank
Between Debt and the Devil
Why Wall Street Matters

Related Channels

Comment on this summary