The second edition of the zeb/value compass examines current trends for value creation in the banking sector and extends the comprehensive empirical study of the 2010 first edition. In 2011, in addition to the 100 largest banks world-wide, the analysis also focuses on the value creation of non-listed banks from Germany, Austria and Switzerland.
The study empirically verifies the institutions that generate an above-average total shareholder return for their shareholders/owners during an entire economic cycle (2003 to 2010) (estimated via an adjusted Sharpe ratio for non-listed banks), and thus derives the relevant success factors.
Besides profitability, successful value creation in banks has to be based on a wide range of metrics (incl. the increasingly important constraints). With respect to the implementation of the value-based management approach, interviews with top managers of international banks also show that non-listed banks, in particular, are still in the “reactive value controllers” stage, whereas some listed banks have already reached the “value advisors” or the target “active value managers” stage. The study thus offers an in-depth view of the current state of value-based management.
The European debt crisis as the major challenge for the years to come has been scheduled as the main topic for the 2012 edition.