Bank on it: Rising interest rates will improve banks' net interest margins, aiding profit growth

Over the five years to 2017, the Commercial Banking industry in Illinois has rebounded. Low interest rates have driven consumer and business appetite for credit, and in turn, increased the industry interest-related income. Moving forward, industry revenue will continue to grow as demand for financial services grows stronger. However, the regulatory environment of this industry has the potential to change significantly over the next five years...read more.

Industry Statistics & Market Size
Revenue
$19bn
Annual Growth 12-17
0.6%
Forecast Growth 17-22
Profit
Employment
78,879
Businesses
4,892
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Industry Threats & Opportunities

  • The cost of borrowing will still be low enough to continue to spur demand for the industry
  • This industry has experienced an increasingly competitive regulatory environment
  • The regulatory environment of this industry has the potential to change significantly
  • Industry Report - Industry Investment Chapter

    The Commercial Banking industry in Illinois is highly competitive, requiring banks to continually achieve cost savings and other efficiencies to maintain customer satisfaction and retain their business. This requires investment in an extensive branch and ATM network to have a presence in regions that are conveniently located near a bank's customer base.Beyond this, banks must invest heavily in technology and communication infrastructure, which is necessary to remain competitive in today's dynamic environment. These and other investments impose capital investment requirements on banks, which are represented by depreciation. The Commercial Banking industry in Illinois is expected spend $0.14 on capital for every dollar spent on labor, an increase from $0.13 in 2012...purchase to read more.

    Additional Insights for the Commercial Banking in Illinois Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commercial Banking in Illinois Industry are

  • Having a good reputation
  • Membership of joint marketing/distribution operations
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Prime rate and Corporate profit in the Commercial Banking in Illinois industry impact industry performance..

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    What is the Commercial Banking in Illinois Industry?

    This industry comprises banks that provide financial services to retail and business clients in the form of commercial, industrial and consumer loans. Banks accept deposits from customers, which are used as sources of funding for loans. Banks in this industry are regulated by the Office of the Comptroller of the Currency.

    Industry Products
  • Real estate
  • Loans to individuals
  • Commercial and industrial loans
  • All others
  • Industry Activities
  • Receiving deposits from customers
  • Issuing consumer, commercial and industrial loans
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Prime rate
  • Corporate profit
  • Access to Credit in Illinois
  • Regulation for the Banking sector
  • External competition for the Commercial Banking industry

  • Current Performance
  • Interest rate environment
  • Regulation drives consolidation
  • Noninterest income and profit increase
  • Chart: Revenue Growth

  • Industry Outlook
  • Commercial banks gain on savings banks
  • Technology
  • Table: Commercial Banking in Illinois Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Commercial Banking in Illinois Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Mining
  • Construction
  • Information
  • Consumers

  • Key Selling Industries
  • Central Banking
  • Commercial Leasing

  • Products & Services
  • Real estate
  • Commercial and industrial loans
  • All others
  • Loans to individuals
  • Chart: Commercial Banking in Illinois Industry Products and Services Segmentation

  • Major Markets
  • Corporate
  • Retail
  • Other
  • Chart: Major Market Segmentation for the Commercial Banking in Illinois Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitOther expensesWagesRent and utilities
  • Chart: Cost Structure Benchmarking – Sector vs Commercial Banking in Illinois

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial Banking in Illinois Industry

  • JPMorgan Chase & Co.Bank of America Corporation Citigroup Inc.Wells Fargo & Company
  • Table: JPMorgan Chase & Co. - financial performance
  • Table: Bank of America Corporation - financial performance
  • Table: Citigroup Inc. - financial performance
  • Table: Wells Fargo & Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Commercial Banking in Illinois 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 Commercial Banking in Illinois Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Prime Rate (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Generation Y
  • The demographic of Americans generally aged 10 to 30.
  • Loan And Lease Loss Provision
  • An amount set aside as an allowance for bad debts (i.e. debts where the customer defaults or where the terms of the loan need to be renegotiated).
  • Loan Default
  • When a customer fails to pay back money received through a loan to the bank.
  • Subprime Mortgage
  • A type of mortgage made out to borrowers with lower credit ratings. Lending institutions often charge higher interest on subprime mortgages to compensate themselves for carrying more risk.
  • Warrant
  • A type of security that entitles the holder to purchase stock in the issuing company at a specified price.
  • Write-Down
  • A deliberate reduction in the value of an asset to reflect its current market value.
  • Why buy this report?

    IBISWorld’s Industry Market Report on Commercial Banking in Illinois is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    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 Commercial Banking in Illinois:
    • 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 Commercial Banking in Illinois 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 Commercial Banking in Illinois, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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