Breaking the bank: Intense competition and subprime loan losses will hurt revenue

Sluggish growth in real estate loans has hindered the Savings Banks and Thrifts industry over the five years to 2017. Postrecession, operators have experienced rebounding deposit levels but continue to cede their overall share of these funds to commercial banks that fall outside the industry's scope. Furthermore, real estate loans given, most of which consist of mortgages, grew slowly. Despite these trends, the industry has rebounded in recent years. Indicators such as the house price index and the S&P 500 have rebounded significantly, increasing consumer and business appetite for credit. Over the five years to 2022, savings institutions are anticipated build on the growth that began during the end of the previous period...read more.

Industry Statistics & Market Size
Revenue
$64bn
Annual Growth 12-17
0.5%
Forecast Growth 17-22
Profit
Employment
132,156
Businesses
10,235
Market Share of Companies
There are no companies with a dominant market share in this industry
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Industry Threats & Opportunities

  • Fallout from the subprime loan crisis will continue to plague the industry
  • Savings banks’ share of total deposits has fallen versus commercial banks
  • Larger commercial banks will continue to use their diverse product offerings to attract depositors
  • Industry Report - Industry SWOT Analysis Chapter

    The Savings Banks and Thrifts industry is in the declining stage of its economic life cycle. Industry value added (IVA), which measures an industry’s contribution to the overall economy, is expected increase to at an annualized rate of 1.5% over the 10 years to 2022. In contrast, US GDP is projected to grow at an annualized rate of 2.1% during the same period. Typically, an industry is considered to be in the mature phase of its life cycle when growth in IVA lags compared with GDP growth during a 10-year period.The industry is characterized by stable product offerings, consolidation and increasing levels of external competition. The activities of savings banks and thrifts have remained virtually unchanged. Ind...purchase to read more.

    Additional Insights for the Savings Banks & Thrifts Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Savings Banks & Thrifts Industry are

  • Access to inexpensive deposits
  • Having a strong local presence
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as External competition for the Savings Banks and Thrifts industry and year conventional mortgage rate in the Savings Banks & Thrifts industry impact industry performance..

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    What is the Savings Banks & Thrifts Industry?

    The industry includes companies that accept customer deposits and place them into interest-bearing products like savings accounts and certificates of deposit (CDs). Industry operators then loan these deposits at higher interest rates through consumer and business loans and make profit on the difference. This industry only covers companies governed by the Office of Comptroller of the Currency; commercial banks and credit unions are not included in this industry.

    Industry Products
  • Residential mortgages
  • Commercial and industrial mortgages
  • Home equity loans
  • Vehicle loans
  • Other business loans
  • Industry Activities
  • Providing residential mortgages
  • Providing commercial and industrial mortgages
  • Providing home equity loans
  • Providing vehicle loans
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • External competition for the Savings Banks and Thrifts industry
  • year conventional mortgage rate
  • House price index
  • Regulation for the Savings Banks industry
  • S&P 500

  • Current Performance
  • Consolidation
  • Deposits go to commercial banks
  • Government regulation
  • Chart: Revenue Growth

  • Industry Outlook
  • Competition from commercial banks
  • Regulation
  • Table: Savings Banks & Thrifts Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Savings Banks & Thrifts Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Commercial Building Construction
  • Consumers

  • Key Selling Industries
  • Commercial Leasing
  • Finance and Insurance

  • Products & Services
  • Residential mortgages
  • Other
  • Other business loans
  • Home equity loans
  • Commercial and industrial mortgages
  • Vehicle loans
  • Chart: Savings Banks & Thrifts Industry Products and Services Segmentation

  • Demand Determinants
  • Demand Determinants
  • Deposits
  • Loans

  • Major Markets
  • Consumers
  • Other operators
  • Transportation/Utility operators
  • Financial, insurance and real estate operators
  • Manufacturing sector operators
  • Service sector operators
  • Health services operators
  • Retail sector operators
  • Chart: Major Market Segmentation for the Savings Banks & Thrifts Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitInterest expensesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Savings Banks & Thrifts

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Savings Banks & Thrifts Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Savings Banks & Thrifts Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Savings Banks & Thrifts Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Total Assets (2008-2022)
  • 30-year conventional mortgage rate (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Certificate Of Deposit
  • A financial product that generally has a specific fixed term and interest rate and is insured by the FDIC.
  • Provisions For Loan Losses
  • Funds set aside as allowances for bad debts, including debts where the customer defaults or where the terms of the loan need to be renegotiated.
  • Write-Down
  • A deliberate reduction in the value of an asset to reflect its current market value.
  • Why buy this report?

    IBISWorld’s industry research report on Savings Banks & Thrifts provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Savings Banks & Thrifts:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Savings Banks & Thrifts market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Savings Banks & Thrifts, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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