MERCER OLIVER WYMAN REPORT
STATE OF THE FINANCIAL SERVICES INDUSTRY 2007
The world’s financial services industry had another strong year, according to the latest Mercer Oliver Wyman report, with the total global value of all quoted financial services companies growing by 26% in 2006 to a record $10,700bn. The growth was driven by a strong performance in mature markets (22%) and outstanding results in emerging markets (43%).
The emerging market countries of eastern Europe, Asia (excluding Japan), Latin America, as well as the Middle East and Africa now represent 21% of the total market value of global financial services and contributed nearly $688bn of the $2200bn overall growth of value. For the sector as a whole, revenues grew 18%, average return on equity increased from 16% to 19% and the average price/earnings ratio increased slightly.
The report also noted:
- While chief executives are generally optimistic about 2007, and collectively project continued market growth of approximately 10%, they also expressed concerns about a number of trends – including slowing growth in mature markets and increasing costs, partly as a result of fierce competition for talent.
- Chief executives expect lower mergers and acquisitions activity in 2007 with the exception of cross-border transactions. Only one in four CEOs intend to engage in a major merger or acquisition, down from one in three last year.
WORLD BANK REPORT
INTEGRITY REPORT FISCAL 2005-2006
Over the past two fiscal years, the World Bank Group’s Institutional Integrity Department (INT) has investigated and closed 441 external investigations into fraud and corruption in World Bank financed projects, says the Integrity Report of the World Bank Group.
As a result of such investigations, the bank debarred 58 firms and 54 individuals due to fraud and corruption, rendering them ineligible to participate in World Bank-financed projects.
Since 1999, the World Bank has sanctioned 338 firms and individuals – all published on its website and publicly announced. The World Bank is the only multilateral development bank that has published the names of the firms it has sanctioned for corrupt practices – a major deterrent to wrongdoing.
The Integrity Department also completed 227 internal cases involving staff misconduct over the past two fiscal years. Of these, the INT substantiated allegations in 77 of the cases involving 78 staff members. As a result of the substantiated allegations, the bank terminated and/or barred from rehire 22 staff and disciplined 11 others for fraud and corruption; terminated and/or barred from rehire five staff members for sexual harassment, disciplined five for failure to comply with personal obligations, terminated seven others for conflict of interest or other violations and disciplined four others for the same. The remaining 24 staff brought themselves into compliance.
