Wholesale banking experienced a period of expansion between 2019 and 2022 with a compound annual growth rate of around eight per cent, according to a Bain & Company report, “Five themes that will fundamentally change wholesale banking”, which predicts the ratio will be reduced to only 2 per cent in the most positive scenario between 2022 and 2025 (projections use 2022 as base year due to incomplete data available for 2023).
During the period, different areas within wholesale banking expanded at varying rates. Corporate lending income soared as net interest margins grew, with transaction banking volumes also expanding. These sectors offset a contraction in investment banking revenues as deal volumes dropped and capital markets flattened after Covid-induced enthusiasm waned.
