Industry Analysis & Industry Trends
Low interest rates have caused interest income to decrease consistently during the last five years. Consequently, industry revenue is expected to decrease at an annualized rate of 0.9% over the five years to 2016, to reach $18.6 billion; this decline includes a 2.6% revenue dip expected in 2016, largely stemming from falling agricultural prices.... purchase to read more
Industry Report - Industry Investment Chapter
The Agricultural Banks industry operates with a low level of capital intensity. IBISWorld estimates that for every $1.00 spent on wages, the industry will allocate $0.03 to capital investment. This 2016 figure represents a slight decrease from $0.05 in 2011. Industry operators extensively rely on a range of highly talented and skilled employees, including analysts, accountants, auditors and loan officers. The educational backgrounds required of these employees largely explain the industry's high and increasing average wage.
Yet, despite the industry's low level of capital intensity, a range of capital expenditures are required to successfully operate as an agricultural bank. Industry participants have invested heavily in branch networks as a means to distribute their services... purchase to read more