european banking barometer – 2016: seeking stability in an uncertain world

European Banking Barometer – 2016 Seeking stability in an uncertain world

European Banking Barometer – 2016 2

What’s inside

43Headcount and compensation

03Introduction

14Business outlook and focus areas

29Strategic priorities and restructuring

52Outlook by market

57Contacts


Section 1

Introduction

4

Introduction

The European Banking Barometer provides an overview of the macroeconomic outlook and its impact on the European banking industry, as well as the priorities banks will focus on over the next 12 months.

Now in its seventh edition, the survey consists of 250 interviews with senior bankers across 12 markets: Austria, Belgium, France, Germany, Ireland*, Italy, the Netherlands, the Nordics, Poland, Spain, Switzerland and the UK.

The fieldwork was conducted via an online questionnaire and telephone interviews during November and December 2015. Respondents were interviewed from a range of financial institutions covering at least 50%** of banking assets in each market. A range of bank types were interviewed in each market to help ensure the study was a fair reflection of each country’s banking industry. Interviews were not conducted with subsidiaries of member or group banks.

The results in this report are presented in an aggregate market format and shown in percentages. Aggregated European-wide results have been weighted in proportion to countries’ banking assets. All country-level data is unweighted.

Please note that some charts may not add up to 100%, and net totals may differ slightly from the numbers shown in the charts, as percentages have been rounded to the nearest whole number. Where possible, we have compared and contrasted the data with that in our European Banking Barometer – 2015.

We would like to thank all the research participants for their contributions to the study.

If you would like to take part in our next European Banking Barometer study, please speak to your usual EY contact or refer to your local country contact on page 58.

European Banking Barometer – 2016European Banking Barometer – 2016 is based on respondents' 12-month outlook.* Ireland has been added to the study as a new market for 2016.** France represents 41% and the Nordics represent 49% of their markets’ banking assets.


Introduction

20

9

11

16

44

Universal (large-scale banking group or major bank)

Corporate and investment

Private bank or wealth manager

Specialist (e.g., consumer credit, savings or a bank that doesn’t offer a current account)

Retail and business (SME business banking)

* Numbers in the pie chart reflect the percentage of respondents who answered. Percentages were calculated using unweighted data. Please note that, given the structure of the German and Swiss banking markets, respondents in these two countries were provided with country-specific bank types that have been reallocated to our five European bank types as follows: In Germany, big banks and regional banks were reallocated to universal banks; foreign banks (not headquartered in Germany) were reallocated to corporate and investment banks; private bankers were reallocated to private banks or wealth management; savings banks and cooperative banks were reallocated to retail and business banks; and central building societies, building loan associations and mortgage banks were reallocated to specialist banks. In Switzerland, major banks were reallocated to universal banks; investment banks were reallocated to corporate and investment banks; private bankers (general or limited partnership) and banks under foreign control were reallocated to private banks/wealth management; cantonal banks, and regional and savings banks were reallocated to retail and business banks; and securities traders were reallocated to specialist banks.

Composite of the survey sample by bank type

Bank type*


Introduction

Market Total Universal Corporate and

investment

Private bank or wealth

management Specialist

Retail and business

(cooperative)

Retail and business (state

owned)

Retail and business

(privately owned)

Austria 10 4 2 1 1 2

Belgium 11 4 1 1 1 4

France 14 5 1 1 3 1 1 2

Germany 72 3 3 8 12 12 32 2

Ireland** 21 4 2 3 9 3

Italy 33 7 3 4 2 7 2 8

Netherlands 9 4 5

Nordics 14 5 1 1 4 1 2

Poland 12 2 10

Spain 9 5 1 1 2

Switzerland 11 2 4 2 3

UK 34 6 12 5 3 2 6

Europe*** 250 49 23 28 40 25 44 41

* Given the structure of the German and Swiss banking markets, respondents in these two countries were provided with country-specific bank types that have been reallocated to our five European bank types as follows: In Germany, big banks and regional banks were reallocated to universal banks; foreign banks (not headquartered in Germany) were reallocated to corporate and investment banks; private bankers were reallocated to private banks or wealth management; savings banks and cooperative banks were reallocated to retail and business banks; and central building societies, building loan associations and mortgage banks were reallocated to specialist banks. In Switzerland, major banks were reallocated to universal banks; investment banks were reallocated to corporate and investment banks; private bankers (general or limited partnership) and banks under foreign control were reallocated to private banks or wealth management; cantonal banks and regional and savings banks were reallocated to retail and business banks; and securities traders were reallocated to specialist banks.** Ireland has been added as a new market to the study for 2016.*** European totals in the table reflect the unweighted number of respondents who answered. All European aggregated percentages in the report are weighted in proportion to markets’ banking assets, as reported by The Banker database in June 2015 and SNL Financial. All market-level figures in this report reflect unweighted data.

Composite of the survey sample by bank type

Bank type*


European overviewEuropean overview

European banks reposition for a long-term environment of regulatory-driven change and low growth.► The broad-based optimism of European bankers in our recent

surveys has evaporated. Although many expect the outlook for individual business lines to improve, limited improvement in financial performance is anticipated. This overall picture masks a sharp divide across European Markets.

► Most bankers expect their agenda for the next 12 months to be dominated by risk management and regulatory compliance.

► With economic conditions a major obstacle to revenue growth, many respondents also anticipate a renewed focus on cost reduction, including further job cuts.

► Where institutions do seek growth, it is likely to be through partnerships or joint ventures rather than acquisitions.

Overall optimism slips to its lowest level since 2012 …► Bank executives are at their least optimistic about their financial

performance since 2012, when the Eurozone debt crisis was at its height.

► Expectations for revenue growth, cost reduction and return on equity (ROE) are also down from last year.

► Unless banks exceed the 1.62% revenue growth and 0.90% reduction in costs they anticipate, we estimate they will only see improvement in average ROE of 0.47% – less than half of the average 1.06% anticipated by the respondents.

► However, expectations of performance are sharply divided across different markets. For example, in Ireland, Spain and the UK, bankers expect ROE to increase by about 2.5%, while the expectation in Poland is for a 3% decline.

Financial performanceFinancial performance expectations are less optimistic: only 52% of respondents believe that the financial performance of their own bank will improve, compared with 56% in 2015. The net positive score – the gap between those expecting their financial performance to strengthen and those expecting it to weaken – has fallen to 29%, the lowest since 13% was recorded in 2012.

29%

View the European overview video at ey.com/ebb

http://www.ey.com/ebb


European overview

Risk at top of agendaRisk management remains top priority: over the years since we launched the European Banking Barometer, managing risk and regulation has consistently dominated banks’ list of priorities – underlining the extent to which it has simply become part of business-as-usual. As with last year, risk management ranks as the No.1 agenda item this time, cited as a priority by 70% of respondents.

… but there is more optimism about the outlook for individual business lines …► While bankers have been optimistic for some time about the

outlook for areas such as private banking and wealth management, there’s a marked pickup this year in their expectations for investment banking and transaction advisory services. This points to a bright outlook for M&A, reflecting the impact on some industries from factors such as the recent market turbulence and plunging oil prices.

… and a broad loosening of lending policies in both the corporate and consumer sectors. ► While this may again appear surprising, given the relatively high

level of market uncertainty, it reflects the fact that banks across Europe are generally in a better capital position than they have been for some time. It seems that, with stronger common equity Tier 1 (CET1) capital ratios – up by an average of 70bps from last year – and impact of the European Central Bank’s quantitative easing program, banks are feeling more freedom to lend.

Risk and regulation continue to dominate the agenda …► Risk management remains the No.1 agenda item for banks, with

other risk and regulation issues, such as capital ratios and compliance with capital market regulations, also still ranking highly.

► Cybersecurity and combating finance crime will remain a key priority for banks in Belgium, France, Ireland, Netherlands, Poland and UK.

… together with efficiency.► Bankers anticipate an increased emphasis on cost reduction – and

not just the strategic kind, but short-term cost cutting as well. ► Streamlining processes is now a key priority for 61% of banks, up

from 57% last year. Perhaps more significant is the increased emphasis on minimizing all non-essential expenditure/cutting costs, a priority for more than half of respondents, compared with just 37% in 2015.

70%




European overview

Headcount reductionHeadcount is expected to fall: fifty-four percent of bankers expect headcount to fall in 2016, compared with 43% in our last survey, with reductions, once again, predicted in operations and IT, other head-office functions and retail banking. Ireland, the Nordics and Switzerland are the only markets where more respondents expect overall headcount to increase rather than decrease.

Expectations for job cuts and pay highlight the renewed emphasis on cost reduction …► Our findings suggest that headcount reduction is likely to be at its

highest rate since 2012, with 54% of respondents predicting it will fall, compared with 43% last year.

► However, in contrast to 2015, most markets anticipate an increase in headcount in compliance, risk and finance, reflecting the prioritization of risk management and regulatory compliance across the industry.

► Bankers also anticipate ongoing moderation of pay. Although 22% of bankers still anticipate a rise in aggregate pay in 2016 – the same number as in 2015 – just 12% anticipate a rise greater than 2%, compared with 17% last year. More significantly, 60% of bankers expect aggregate pay to remain flat in 2016.

… as banks turn to innovation and partnerships to drive growth.► Our findings also underline the rapidly growing focus on investing

in customer-facing technology – which will be central to winning market share and share of wallet – with 53% of banks citing this as a priority, up from 43% last year.

► With many banks preoccupied by regulatory compliance and challenged by budget cuts, partnerships with FinTech firms may play a key role in developing new technologies to support their growth agenda as partnerships with industry disruptors was cited as a key priority by 23% of respondents.

Finally, a new agenda item for banks might be preparing for the impact of the UK leaving the EU.► With the UK’s referendum on EU membership scheduled for June

2016, 70% of all European banks anticipate some impact from a UK departure. More importantly, 27% of banks in EU countries outside the UK say the impact would be “considerable” or “significant.”

54%




Highlights

How do you expect your bank’s overall financial performance to change over the next 12 months?

Overall optimism of senior banking executives slips to its lowest since 2012 …

Despite falling ROE expectations, bankers continue to have ambitious predictions:

13 48 462012 2013 2014 2015 2016

% % % 40 29% %

* Net increase

1.6%

0.9%

1.1%

Revenue

Cost base

ROE uplift

0.5%

Half of what the banks anticipate

EY analysis predicts banks will only achieve 0.5% ROE uplift based on bankers’ revenue

and cost predictions.

Average ROE

* Difference between the respondents who answered it would strengthen and those who answered it would weaken.

Bankers’ expectations for 2016 EY’s expectations


Highlights

How do you rate the outlook for your bank over the next 12 months?

… but the prognosis is brighter for specific business lines.

* Not good

57% 52% 46% 42%

Private banking / wealth management

Corporatebanking

Retailbanking

Transaction advisory,e.g., M&A

* Difference between the respondents who answered it would be poor and those who answered it would be good.


Highlights

European bankers’ top three priorities for 2016:

Risk and regulation – together with cost cutting – dominate the agenda.

Minimizing all non-essential expenditure/cutting costs

Investing in customer-facing technology

Cybersecurity/data security

Reputational risk**

Compliance with capital market regulations

Capital, liquidity and the leverage ratio

Streamlining processes/further automation/investing in technology

Risk management

51

53

56

58

58

60

61

70

Banks’ top agenda items*

Risk andregulation

Cost cutting and efficiency

Innovation and growth

* Percentage of respondents ranking agenda items as very important** Reputational risk includes tax transparency, remuneration and cultural issues..

In 2015 compared with

Strong focus on cost cutting:

43%

in 2016 predict headcount to fall, which is at its highest rate since 2012.

54%


Highlights

FinTech collaboration will enable banks to innovate and grow.

23% 53%Expect to collaborate with FinTech companies …

… banks looking to invest in customer-facing technology …

… which is critical to the …

… and respond to the growing emphasis on enhancing cyber security.

47In 2014

% 48In 2015

% 56In 2016

%


Section 2

Business outlookand focus areas


Business outlook and focus areas

* Numbers reflect the percentage of respondents who answered. Base excludes respondents who answered “Don’t know.”

2 21 25 44 8

1 15 27 48 8

Weaken significantly Weaken slightly Stay the same Strengthen slightly Strengthen significantly

2016

2015

Comments: Only in our 2012 survey, in the midst of the Eurozone debt crisis, have bankers been less optimistic about their institution’s financial performance. Across Europe, banks anticipate an improvement in revenue of just 1.6%, which is well below last year’s rather modest 3.5% prediction. Similarly, bankers expect costs to fall by an average of 0.9%, well below the 1.6% they anticipated last year. Although respondents hope that these improvements will deliver an average increase of 1.1% in ROE (also down from 1.6% last year), EY analysis suggests that the anticipated revenue growth and cost reduction will boost ROE by a mere 0.5%. However, despite a general decline in confidence, expectations are sharply divided across Europe. The outlook is bleakest in Poland, where bankers anticipate a 3.3% decline in ROE as they grapple with regulatory change and higher operating costs. Banks in Germany and the Nordics also anticipate a slight decline in ROE. By contrast, bankers in Ireland, Spain and the UK expect ROE increases in excess of 2.5%.

How do you expect your bank’s financial performance to change over the next 12 months?*

Bankers are less optimistic about their institution’s financial performance than at any time in the last four years …




Revenue

Average percentage change

1.17

2.45

1.62

1.96

1.04

6.28

2.13

1.81

1.50

3.59

0.83

1.09

1.59

Cost base

-1.90

-2.05

-0.90

-0.58

0.52

0.14

-0.72

-2.19

-1.07

2.55

-4.56

0.82

-1.25

ROE

0.40

0.18

1.06

0.79

-0.17

2.80

1.76

0.50

-0.61

-3.33

2.56

0.91

2.66UK

Switzerland

Spain

Poland

Nordics

Netherlands

Italy

Ireland

Germany

France

Europe

Belgium

Austria

-6.50 -5.50 -4.50 -3.50 -2.50 -1.50 -0.50 0.50 1.50 2.50 3.50 4.50 5.50 6.50

Increase

1.17-1.90 0.40

Decrease significantly Increase significantly

Percentage increase

Stay the same

2.45-2.05 0.18

1.62-0.90 1.06

1.96-0.58 0.79

1.040.52-0.17

6.280.14 2.80

2.13-0.72 1.76

1.81-2.19 0.50

1.50-1.07 -0.61

3.592.55-3.33

0.83-4.56 2.56

1.090.82 0.91

1.59-1.25 2.66

How do you expect your bank’s financial performance to change over the next 12 months?*

… with only Irish, Spanish and UK banks expecting ROE growth of over 2.5%.


33

42

40

43

43

47

51

52

50

10

4

7

8

7

5

5

7

13

13

11

10

9

9

10

9

7

5

1

2

2

4

1

1

1


Base excludes respondents answering “Does not apply” or who chose not to answer.* Numbers reflect the percentage of respondents who answered. Respondents answering “Neither good nor poor” are not displayed.1. EY’s Capital Confidence Barometer can be downloaded at ey.com/ccb.

Deposit business

Securities trading

Asset management

Debt and equity issuance

Securities services

Transaction advisory (e.g., M&A)

Retail banking

Corporate banking

Private banking and wealth management

38

27

37

43

38

37

41

53

53

5

5

8

11

6

6

14

5

9

17

18

13

9

14

17

12

6

7

2

2

2

4

1

2

1

1

Net good

57

52

46

42

41

38

36

33

29

Net good20162015

54

51

44

24

29

40

30

13

25

Very goodFairly goodVery poor Fairly poor

Comments: While bankers continue to believe the outlook is most positive for “capital-light” private banking and wealth management, as well as corporate banking, the most dramatic improvement in outlook since last year is for capital market-related businesses. Notably, more than half of respondents believe the outlook for transaction advisory services is good. This reflects the results of EY’s latest Global Capital Confidence Barometer,1 which predicts increased M&A spending in several sectors, including construction, gaming, pharmaceuticals, capital goods and telecommunications. Weak oil prices and low company valuations may also create opportunities for transactions in the oil and gas industry. Only the outlook for debt and equity issuance is slightly less positive than in 2015, reflecting uncertainty about the prospects for economic growth in European and other major global markets.

How do you rate the outlook for your bank over the next 12 months in each of the following business lines?*

Nevertheless, bankers remain upbeat about the outlook for individual lines of business …

http://www.ey.com/ccb



Base excludes respondents answering “Does not apply” or who chose not to answer.* Numbers reflect the percentage of respondents who answered. Respondents answering “Neither good nor poor” are not displayed.

UKSwitzerland

SpainPoland

NordicsNetherlands

ItalyIreland

GermanyFranceEurope

BelgiumAustria

3545

3860

4360

5750

635050

7344

818

131043

1430

917

13

22

129

14

1120

2

5

-3.846154

-0.758471


UKSwitzerland

SpainPoland

NordicsNetherlands

ItalyIreland

GermanyFranceEurope

BelgiumAustria

5264

4458

45100

60424445

5267

50

16

11.11111125

3.33333316.666667

3.1259.090909

6.925289

-8

-9.090909

-13.333333-8.333333

-7.8125-9.090909

-6.86993999999999

-12.5

2

UKSwitzerland

SpainPoland

NordicsNetherlands

ItalyIreland

GermanyFranceEurope

BelgiumAustria

5740

5050

5640

6250

3955

5163

44

9.52381

2511.111111

3.44827620

3.030303

4.92053425

22.222222

520

13

10

999

22

-10-1.515152

UKSwitzerland

SpainPoland

NordicsNetherlands

ItalyIreland

GermanyFranceEurope

BelgiumAustria

4857

4340

3367

4733

1960

4733

80

414

5

510

5

-13.043478

-42.857143-20

-10.526316

-8.108108

-10.134555-33.333333

-20

-5.26315799999999

-11.111111

-0.553562

Private banking and wealth management Corporate banking

Retail banking Transaction advisory (e.g., M&A)


… with a significant improvement in the outlook for transaction advisory and …


UKSwitzerland

SpainPoland

NordicsNetherlands

ItalyIreland

GermanyFranceEurope

BelgiumAustria

4027

4440

29

3555

6155

4330

70

5

388

97

97

518

1110

254

499

2010

-5

-1




UKSwitzerland

SpainPoland

NordicsNetherlands

ItalyIreland

GermanyFranceEurope

BelgiumAustria

7514

5040

4580

3636

3127

431413

8.333333

1018.181818

89.090909

18.1818187.966875

414

1018

129

1199

2925

429

497

4

UKSwitzerland

SpainPoland

NordicsNetherlands

ItalyIreland

GermanyFranceEurope

BelgiumAustria

3336

504043

2241

5840

4540

6050

4

1310

1422

1025

9

710

1327

101411108

39

1010

-8

3

-2

UKSwitzerland

SpainPoland

NordicsNetherlands

ItalyIreland

GermanyFranceEurope

BelgiumAustria

3545

5017

4433

4060

3955

42

44

4

811

49

4

2318

3311

1717

5

1114

22

-4

-17

-2

Securities services Debt and equity issuance

Asset management Securities trading


… securities services and securities trading. However, the outlook for debt and equity issuance is slightly less positive than last year …


UKSwitzerland

SpainPoland

NordicsNetherlands

ItalyIreland

GermanyFranceEurope

BelgiumAustria

2810

4467

5050

4230

3833

6410

2110

1117

133

254

810

1820

-17

-33

-33-13

-23-8

-13

-13

3

3

-1

-1




Deposit business


… reflecting broad economic uncertainty and concerns about valuations in a volatile market.


41 33 32

22 21

9 13

7 13

7 4

11

2523242827263130

3837

4349


Base excludes respondents who answered “Don’t know.”* Numbers reflect the percentage of respondents who answered. Respondents answering “Remain unchanged” are not displayed. ** Manufacturing and industrials includes chemicals, engineering, infrastructure and materials; Health care includes pharmaceuticals, biotechnology and life sciences; transport includes automotive and shipping.2. https://www.eba.europa.eu/-/eba-recommends-introducing-the-nsfr-in-the-eu.

Energy, mining and minerals

Construction

Commercial real estate

Financial services

Transport**

Media and telecommunications

Retail and consumer products

Commercial and professional services

Manufacturing and industrials**

IT

Health care**

SMEs

24 33

38 27 23 17 19

11 17 11

17 18

3019181921

312529

403944

52

20162015Net less

restrictiveNet less

restrictive

3939302523171766-7-10-16

3428282418613-2-8

-21-146

How do you expect the corporate lending policies of banks in your market to change in each of the following sectors over the next 12 months?*

Banks expect policies for lending to most sectors to be less restrictive, aided by stronger capital positions and ongoing monetary easing …

Comments: Bankers continue to expect corporate lending policies to become less restrictive across most sectors. This expectation supports the European Banking Authority’s (EBA) recent assertion that there is no strong statistical evidence of significant negative impacts of the net stable funding ratio (NSFR) on bank lending. 2 With stronger capital positions – average Tier 1 (CET 1) common equity for European banks has increased by 70bps over the last 12 months – competitive pressure and narrower margins on loans may spur further loosening of lending criteria, as some banks seek to compensate for tighter margins by growing their lending book. However, as banks continue to de-risk their balance sheets, lending policies for the commercial real estate and construction sectors will continue to tighten. In addition, lending criteria for the energy sector is expected to become more restrictive, as firms in that sector continue to suffer from the continued depression of oil prices.

■ More restrictive ■ Less restrictive

https://www.eba.europa.eu/-/eba-recommends-introducing-the-nsfr-in-the-eu


Energy, mining and mineralsConstruction

Commercial real estateFinancial services

Transport**Media and telecommunicationsRetail and consumer products

Commercial and professional servicesManufacturing and industrials**

ITHealth care**

SMEs

2525

1325

2525

382525

5038

38

631413

1313


Base excludes respondents who answered “Don’t know.”* Numbers reflect the percentage of respondents who answered. Respondents answering “Remain unchanged” are not displayed.** Manufacturing and industrials includes chemicals, engineering, infrastructure and materials; Health care includes pharmaceuticals, biotechnology and life sciences; transport includes automotive and shipping.

Austria





ITHealth care**

SMEs

201414

2933

1414

3317

5729

57

6043

2929

3314

2933

5014

2929

Belgium





ITHealth care**

SMEs

1626

346

202424

3036

244650

2016

2636

224

6

614

26





ITHealth care**

SMEs

4325

3825

3814

2538

2538

5063

38131313

13

13

However, lending policies to the energy sector are set to be more restrictive in all markets except France and Italy …How do you expect the corporate lending policies of banks in your market to change in each of the following sectors over the next 12 months?*

France Germany








ITHealth care**

SMEs

5521

1348

3943

6341

7057

7579

950

589

13

45

134





ITHealth care**

SMEs

25252525252525

2525

50

25

25





ITHealth care**

SMEs

208080

5033

1760

40333333

67

4020

1717

33

1717





ITHealth care**

SMEs

715757

4343

17434343

1414

43

17

2929

1429

… while lending to commercial real estate and construction are expected to tighten in most markets …How do you expect the corporate lending policies of banks in your market to change in each of the following sectors over the next 12 months?*


Ireland Italy

Netherlands Nordics








ITHealth care**

SMEs

14

1414141414141414

43

4343

5714

2929

1414





ITHealth care**

SMEs

917

18201817

91818

2758

7325

1445

1036

2518

99





ITHealth care**

SMEs

5063

3875

6363

8657

100100

6386

381313

13





ITHealth care**

SMEs

101917

3620

252528

243029

37

524339

2325

1520

1129

55

11

… except Austria, Germany, Ireland and Spain.


Poland Spain

How do you expect the corporate lending policies of banks in your market to change in each of the following sectors over the next 12 months?*

Switzerland UK




Base excludes respondents who answered “Don’t know.”Numbers reflect the percentage of respondents who answered. Respondents answering “Remain unchanged” are not displayed. * Other forms of unsecured personal credit includes overdrafts and point of sale.** This question was added in 2016, so comparison data for 2015 is unavailable.

Other forms of unsecured personal credit*

Peer-to-peer lending

Mortgage lending

Credit cards

Personal loans

27

14

20

10

15

28

33

42

38

46

2016Net less

restrictive

31

28

21

19

1

Many bankers also anticipate retail and consumer lending to be less restrictive over the next 12 months …How do you expect the retail and consumer lending policies of banks in your market to change in each of the following areas over the next 12 months?**

Comments: Stronger capital positions, and an expectation that central bank rates will remain low, will also enable banks to loosen their criteria for retail and consumer lending. Expectations that mortgage lending policies will be eased, despite the formal introduction of the EU Mortgage Credit Directive in March 2016, reflect a very positive outlook for the European residential and property markets. Lending policies are also expected to be much less restrictive in Ireland and Spain, where recovering economies are supported by low rates and an improving labor market.






Mortgage lending

Credit cards

Personal loans

14

50

63

38

14

Austria Belgium

France Germany



Mortgage lending

Credit cards

Personal loans

57

43

25

25

63

14

25

13



Mortgage lending

Credit cards

Personal loans

22

20

11

22

38

56

33

44

44



Mortgage lending

Credit cards

Personal loans

12

26

50

22

38

34

9

4

12

6

… although lending policies are expected to be more restrictive in Belgium …How do you expect the retail and consumer lending policies of banks in your market to change in each of the following areas over the next 12 months?**






Mortgage lending

Credit cards

Personal loans

57

29

43

57

71

14

29


Ireland Italy

Netherlands Nordics



Mortgage lending

Credit cards

Personal loans

75

25

50

25

50

25

63



Mortgage lending

Credit cards

Personal loans

44

21

77

69

73

16

5

4

8

4



Mortgage lending

Credit cards

Personal loans

13

14

13

13

13

38

43

63

13

25

… the Netherlands, the Nordics, Poland and Switzerland.

How do you expect the retail and consumer lending policies of banks in your market to change in each of the following areas over the next 12 months?**






Mortgage lending

Credit cards

Personal loans

17

17

25

33

17

58

17

42


Poland Spain

Switzerland UK



Mortgage lending

Credit cards

Personal loans

43

25

29

50

43



Mortgage lending

Credit cards

Personal loans

57

50

100

86

86



Mortgage lending

Credit cards

Personal loans

20

50

41

43

13

27

29

24

21

19

A significant loosening of consumer lending policies is anticipated in Spain.How do you expect the retail and consumer lending policies of banks in your market to change in each of the following areas over the next 12 months?**




Section 3

Strategic priorities and restructuring



Base excludes respondents answering “Does not apply.” * Respondents were asked to rank the importance of activities on a scale of 0 to 10, where 0 denotes “Not at all important” and 10 denotes “Very important.” Numbers show the percentage of respondents selecting either 8, 9 or 10. ** Compliance with capital market regulations includes MiFID/EMIR. *** Reputational risk includes tax transparency, remuneration and cultural issues.**** Diversity requirements relating to CRD IV – putting in place a policy to promote diversity on the management board.

2016

Rank order of importance

OutsourcingNew foreign markets/internationalization

Acquiring new assets or businessesOffshoring

Disposing of assets or businessesNew remuneration systems

Establishing new business segmentsDeveloping partnerships with industry disruptors/FinTech companies

Diversity requirements relating to CRD IV****Restructuring the business to comply with regulations

Developing/introducing new productsRestructuring the business to cut costs

Current changes in financial reporting/IFRSOptimize your balance sheetThe threat of financial crime

Compliance with consumer regulation/remediationMinimizing all non-essential expenditure/cutting costs

Investing in customer-facing technologyCybersecurity/data security

Reputational risk***Compliance with capital market regulations**

Capital, liquidity and the leverage ratioStreamlining processes/further automation/investing in technology

Risk management

10.421345

12.89288115.337973

36.143117

38.819269

50.882822

60.568469

1313

1923

29

53

17.913588

23.95592628.663549

37.428753

39.74597950.022667

56.3680757.89689358.47601160.104919

70.444537

Despite a renewed focus on efficiency, risk management and regulatory compliance will continue to lead the banking agenda.Rank the importance of the following agenda items for your organization*

Comments: Increased emphasis on the efficiency agenda is expected in 2016. Streamlining processes remains the most important cost-reduction initiative, but 51% of respondents now see minimizing non-essential spend as critical, compared with just 37% in 2015. There is also greater focus on parts of the growth agenda, with investing in customer-facing technology a key priority for 53% of respondents, compared with just 43% in 2015. Another route to growth may be through partnerships with industry disruptors, and 23% of respondents expect partnering with FinTech firms to be important for their institution. Nevertheless, risk management and regulatory compliance will continue to dominate the banking agenda, and the 2016 EU-wide stress test means capital requirements will be a key focus for many institutions. Cybersecurity has also gained greater prominence for bankers across Europe, with 56% citing it as important, up from 48% last year.

2015 2016142536897

10-

12151316141820212325221724

123456789101112131415161718192021222324

Risk and regulation








Diversity requirements relating to CRD IV²Restructuring the business to comply with regulations





Reputational risk¹Compliance with capital market regulations


Risk management

1140

99

3640

3030

55

5536

5555

6491

8245

82646464












Risk management

20

1120

401011

4040

5050

2020

4460

4020

403030

6060


Risk and regulation


Innovation and growthAustria Belgium

Banks in some markets, such as Belgium and the Nordics, see investing in customer technology as their No.1 priority. Rank the importance of the following agenda items for your organization*














Risk management

373

13

107

1515

7181920

1514

4447

5135

2449

6067

56












Risk management

181414

278

151415

211514

543638

3657

3636

715050

3650

71


France Germany

It is also the main focus for growth for banks in many other markets, including Germany and Italy … Rank the importance of the following agenda items for your organization*

Risk and regulation
















Risk management

1720

155

1718

3332

2032

4841

3727

3439

5564

5555

4548

6467












Risk management

255

1626

2025

2024

4337

2943

5737

3335

7157

4741

6257


Ireland Italy

… while banks in Ireland are focused on introducing more products to deliver growth.Rank the importance of the following agenda items for your organization*

Risk and regulation
















Risk management

17

1477

148

3129

213636

2942

3664

3636

5443

5757


Netherlands Nordics












Risk management

1113

2214

222222

4444

6733

3778

6756

6756

6356

898989

7867

A significant minority of bankers in a number of markets see partnerships with industry disruptors as a path to growth.Rank the importance of the following agenda items for your organization*

Risk and regulation
















Risk management

1322

4411

3325

4438

6363

5625

3856

4444

8963

3389

78100

3378


Poland Spain












Risk management

11

9

228

1717

5518

2537

2755

4275

2567

9258

4292

7583

Yet the risk and regulatory agenda will preoccupy most banks, including enhancing cybersecurity in Poland and meeting …Rank the importance of the following agenda items for your organization*

Risk and regulation
















Risk management

1413

92829

3321

3127

4235

5538

596868

5955

7691

7068

7685












Risk management

9

9

99999

945

1827

1045

5555

4555

8236

82


Switzerland UK

… capital requirements in Spain and Switzerland. In the UK, the focus for most banks will be managing reputational risk.Rank the importance of the following agenda items for your organization*

Risk and regulation





20 20 20 20 20

Not at all Slightly Moderately Considerably Significantly


* Numbers reflect the percentage of respondents who answered. Base excludes respondents who answered “Don’t know.”** This question was added in 2016, so comparison data for 2015 is unavailable.

40

20

40

29

14

29

29

14

38

29

19

27

27

36 9

40

32

18

10

27

24

39 3 6

11

11

56

22

58 8 1

7 8 8

64

27 9

36

29

29 7

22

33

33

11

15

18

15

24

29

Austria

Belgium

Europe

France

Germany

Ireland

Italy

Netherlands

Nordics

Poland

Spain

Switzerland

UK

29

22

25

10

13

2016**

Should the UK vote to leave the EU in June, over 70% of banks would be impacted.If the UK was to leave the EU, to what extent would it impact your business?*

Comments: On 23 June 2016, voters in the UK will decide whether to remain in, or leave, the EU. Unsurprisingly, the possible impact of the UK leaving the EU is expected to be greatest for UK and Irish banks, however, 70% of all European banks believe that, if the UK were to leave, it would have some impact on their business, with almost a quarter anticipating a considerable or significant impact. Many banks, especially those with major capital markets businesses in London, would need to decide whether to scale down their UK operations and build out operations in other European financial centers. Nevertheless, it would be difficult for organizations to “lift and shift” businesses, so any relocation is likely to take an extended period of time.




20162015

Small-scale consolidation Medium-scale consolidation Large-scale consolidation Don't know

7

15

32

48

43

32

17

5

3 years

12 months

6

25

40

47

38

22

15

6

More bankers now expect some degree of consolidation in their market in the next 12 months.To what extent do you anticipate consolidation of the banking industry over the next 12 months and within the next three years?*

Comments: Eighty-five percent of respondents now anticipate some industry consolidation in the next 12 months. Most of this activity is expected to be small in scale, suggesting that banks will continue only to make disposals or acquisitions of small books of business that are closely aligned to their core strategy. However, the pace of consolidation may now be picking up. There is a modest increase in those expecting medium- or large-scale consolidation in the next 12 months – now 37% compared with just 28% last year – as well as an increase in the number of bankers expecting significant consolidation over the next three years. In the near term, consolidation may be encouraged where regulators are concerned about the solvency, stability and resolution of banks in Europe. The greatest consolidation is anticipated in markets where banks were shown to have capital shortfalls or where there is overcapacity, such as in Italy. Over the longer term, consolidation may be supported by an improvement in transparency through the introduction of the Single Supervisory Mechanism (SSM), initiating uniform capital structures and better clarity on asset valuations.


1



Austria Belgium Germany

Netherlands Nordics

SwitzerlandPoland UKSpain

Italy

France

7

51

54

35

38

77

I do not anticipate any consolidation Small-scale consolidation Medium-scale consolidation Large-scale consolidation

3 years

12 months

5

11

48

53

29

16

19

21

Ireland

15

31

62

46

15

23 7.69230799999998

29

42

29

50

43

8

22

33

44

44

33

22

53

71

38

18

6

9

91

649.090909

36

40

44

60

1144

6

17

61

53

33

27

22

33

44

6733.333333

3 years

12 months

10

20

30

50

60

30

3 years

12 months

8

50

50

17

42

33 3

3

3

Over the next three years, the most significant consolidation is expected in Austria, Germany and Poland.To what extent do you anticipate consolidation of the banking industry in your market over the next 12 months and within the next three years?*



* Numbers reflect the percentage of respondents who answered.

Sell assets Buy assets Partnerships or joint ventures

None of these

2630

3431

2528

31

35

2015 2016

However, partnerships or joint ventures remain banks’ preferred path to inorganic growth in most markets …

Which, if any, of the following is your bank likely to consider over the next 12 months in relation to the countries in which it operates?*

Comments: Banks’ appetite for acquisitions, disposals and partnerships is little changed from last year. With emerging regulation encouraging global banks to reduce their geographic coverage, partnerships – for example, correspondent banking relationships – are likely to remain the preferred form of inorganic growth or route to access new markets. This is reflected in the rise in disposals and partnerships in the Americas. Furthermore, while historically they have been focused on small acquisitions or disposals to enhance their core business, we believe that banks are now increasingly looking for acquisitions and partnerships with technology firms. Not only did 23% of respondents cite partnerships with FinTech companies as a key priority for 2016, but more than half believe investment in customer-facing technology is a critical agenda item this year. With many banks preoccupied by regulatory compliance, and challenged by budget cuts, partnerships with FinTech firms may play a key role in developing and deploying new technologies to support their growth agenda.



* Numbers reflect the percentage of respondents who answered.

Sell assets Buy assets Partnerships or joint ventures None of these

UK

Switzerland

Spain

Poland

Nordics

Netherlands

Italy

Ireland

Germany

France

Europe

Belgium

Austria

35

14

11

23

19

14

25

0

14

45

26

24

33

47

33

33

14

33

39

38

13

14

25

9

40

52

17

33

23

19

25

26

27

30

38

33

32

36

44

17

7

33

24

43

14

36

28

45

20

35

40

33

15

31

29

15

34

45

34

14

17

21

9

33

25

36

44

42

38

25

43

31

18

30

23

33

56

54

44

57

50

32

9

31

33

17

15

55

22

33

50

11

27

29

61

36

35

45

50

20162015

… except for Belgium, Ireland and Spain, where acquisitions are expected. Which, if any, of the following is your bank likely to consider over the next 12 months in relation to the countries in which it operates?*



* Numbers represent the total number of mentions for that particular region. Respondents could state more than one region.** Includes responses for “Rest of the world” and “Worldwide.”

Joint ventures

Sell assets

Buy assets

0 5 10 15 20

8

5

3

8

8

6

North America

Joint ventures

Sell assets

Buy assets

0 5 10 15 20

6

5

4

8

5

7

Asia-Pacific

Joint ventures

Sell assets

Buy assets

0 20 40 60

56

37

51

50

42

44

Europe

Joint ventures

Sell assets

Buy assets

0 5 10 15 20

2

2

2

5

1

South America

Joint ventures

Sell assets

Buy assets

0 5 10 15 20

3

2

7

2

4

Middle East and Africa

Joint ventures

Sell assets

Buy assets

0 5 10 15 20

2

3

1

10

7

2

Across the world**

20162015

And joint ventures will play a key role for banks looking to expand in new markets. In which regions is your bank likely to sell assets, buy assets or consider joint ventures over the next 12 months?*


Section 4

Compensation and headcount


+/- 10%

+/- 8%–10%

+/- 5%–8%

+/- 2%–5%

+/- 1%–2%

Total

2

2

2

6

11

22

2

5

1

5

3

17

Headcount and compensation

Base excludes respondents answering “Don’t know.” * Numbers reflect the percentage of respondents who answered. Respondents answering “Stay the same” are not displayed.3. EY’s Global Banking Outlook 2016: Transforming talent – The banker of the future is available to download at ey.com/bankingtalent.

Decrease Increase

Netincrease

5

8

1

1

-3

0

Pay rises are expected to be modest in light of regulatory and investor pressures.Compared with the last 12 months (FY15), to what extent will aggregate (i.e., total fixed and performance-related) compensation change at your bank over the next 12 months (FY16)?*

Comments: Bankers anticipate ongoing moderation of pay, reflecting the impact of weak business performance, as well as regulatory and shareholder pressure. Although 22% of bankers still anticipate a rise in aggregate pay in 2016 – the same number as in 2015 – just 12% anticipate a rise greater than 2%, compared with 17% last year, while 60% of bankers expect aggregate pay to remain flat in 2016. This trend is likely to continue as institutions will face greater regulatory pressure when the EBA sets out its “sound remuneration policies,” which are expected to come into force by January 2017, introducing new rules limiting bonuses to a maximum of two times salary. Pay must now be better aligned to both institutional and individual performance, as well as to risk. The downward pressure on pay may mean banks will need to find new approaches to recruiting and retaining staff in future.3


-4.76190499999998

-4.76190499999998

-9.52381

10

5

29

5

48

+/- 10%

+/- 8%–10%

+/- 5%–8%

+/- 2%–5%

+/- 1%–2%

Total

10

10

20

20

-6.89655199999999

-6.89655199999999

-3.448276

-17

3.448276

3.448276

6.89655199999999

14

+/- 10%

+/- 8%–10%

+/- 5%–8%

+/- 2%–5%

+/- 1%–2%

Total

2.816901

29.577465

32.394366

-1.408451

-5.633803

-7.042254

7

7

7

21

7

7

9.090909

9.090909

-9.090909

-9.090909


Base excludes respondents answering “Don’t know.”* Numbers reflect the percentage of respondents who answered. Respondents answering “Stay the same” are not displayed.

Austria

Germany

Belgium

Ireland

France

Italy

Decrease Increase

Netincrease

-10

0

-10

0

0

0

Netincrease

0

0

0

0

0

0

Netincrease

Netincrease

25

24

1

0

0

0

Netincrease

38

5

24

5

10

-5

Netincrease

-3

3

3

-3

0

-7

14

7

7

0

0

0

Bankers in France, Germany, Ireland, the Nordics and Switzerland anticipate small increases in pay …Compared with the last 12 months (FY15), to what extent will aggregate (i.e., total fixed and performance-related) compensation change at your bank over the next 12 months (FY16)?*


6

12

9

3

29

5.882353

8.823529

2.941176

17.647059

9.090909

27.272727

36.363636

+/- 10%

+/- 8%–10%

+/- 5%–8%

+/- 2%–5%

+/- 1%–2%

Total

11

11

22

11

11

22

-9

-18

-27

9

9

18

7.14285699999997

7.14285699999997

14.285714

-7.14285699999997

-7.14285699999997

+/- 10%

+/- 8%–10%

+/- 5%–8%

+/- 2%–5%

+/- 1%–2%

Total

11

11

22

11

56

11.111111

11.111111



Netherlands

Spain

Nordics

Switzerland

Poland

UK

Netincrease

-44

-11

-11

0

-11

-11

Netincrease

7

7

0

0

0

0

Netincrease

-9

9

-9

-9

0

0

Netincrease

0

11

-11

0

-11

11

Netincrease

36

27

0

0

0

9

Netincrease

-12

0

0

6

-12

-6

Decrease Increase

… but remuneration is expected to fall in most other markets, with the Netherlands and the UK anticipating some of the greatest cuts.Compared with the last 12 months (FY15), to what extent will aggregate (i.e., total fixed and performance-related) compensation change at your bank over the next 12 months (FY16)?*


27 2358

23 33816


Base excludes respondents answering “Don’t know/Depends.”* Numbers reflect the percentage of respondents who answered. Respondents answering “Stay the same” are not displayed.

2016

Increase significantlyIncrease slightlyDecrease significantly Decrease slightly

2015

Net increase

-28

-15

With a renewed focus on cost cutting in many markets, most bankers anticipate further reductions in headcount …Over the next 12 months, how do you expect the headcount of your bank to change?*

Comments: With cost cutting a greater priority for banks in 2016, it is unsurprising that more bankers now anticipate headcount reductions – one of the quickest ways of reducing expenditure. Fifty-four percent of bankers now expect headcount to fall, compared with just 43% in 2015. Despite this renewed focus on reducing staff numbers, outsourcing and offshoring remain relatively low priorities for banks in the near term. However, we anticipate an increase in banks entering outsourcing or managed service partnerships in the medium term, as job cuts force banks to seek more cost-efficient ways to deliver non-core services.


UK

Switzerland

Spain

Poland

Nordics

Netherlands

Italy

Ireland

Germany

France

Europe

Belgium

Austria

32

18

44

50

50

33

30

14

56

36

38

27

20

-23.529412

-22.222222

-8.333333

-7.14285699999997

-33.333333

-18.181818

-19.47619

-4.225352

-14.285714

-15.63681

-18.181818

-40

24

18

22

17

7

11

27

48

14

36

23

36

30

6

9

11

5

3



UK

Switzerland

Spain

Poland

Nordics

Netherlands

Italy

Ireland

Germany

France

Europe

Belgium

Austria

27

31

50

46

56

29

35

44

27

35

33

17

-6.666667

-7.69230799999998

-12.5

-14.285715

-19.999999

-2

-9.090909

-8.358157

-19.047619

-33.333332

43

21

13

31

19

29

20

22

27

27

24

17

5

13

2

10

-33

-19

-15

-9

-24

-35

-14

-50

-23

-25

-5

10

2015 Net increase

Increase significantlyIncrease slightlyDecrease significantly Decrease slightly

-30

-9

-28

-14

-46

19

-21

-44

-50

-42

-44

9

-26

2016 Net increase

… except in Ireland and Switzerland, where a rise in headcount is anticipated.Over the next 12 months, how do you expect the headcount of your bank to change?*


25

5

28

26

44

25

40

33

51

56

32

51

34

47

21

18

10

18



Administration

Other head-office functions

Retail and business banking

Investment banking

Operations and IT

Corporate banking

Private banking and wealth management

Asset management

Compliance, risk and finance

2

10

7

6

13

12

5

10

31

32

17

28

7

7

7

12

■ Decrease ■ Increase

20162015 Net increase

Net increase

-2

-1

4

7

-21

-10

-22

-29

33

23

21

4

-3

-8

-23

-27

-31

Most job cuts will be in administrative and head-office functions, as well as in retail banking.In which areas of the business do you expect headcount to change?*

Comments: As in last year, the greatest headcount reductions are anticipated in operations and IT, other head-office functions and retail banking. Unsurprisingly, recruitment will be focused on growth sectors such as corporate banking, private banking, and wealth and asset management. However, in contrast to 2015, most markets anticipate an increase in headcount in compliance, risk and finance, which reflects the prioritization of risk and regulation across the industry.


17666

39

617

28

3311

226

331111

6

AdministrationOther head-office functions

Retail and business bankingInvestment banking

Operations and IT

Corporate bankingPrivate banking and wealth management

Asset managementCompliance, risk and finance

5611

4422

4411

1133

11.11111111.111111

22.2222211.111111

22.222222



Operations and ITCorporate banking

Private banking and wealth managementAsset management


7.54717

3.7735851.8867929.4339627.547177.54717

5.66037699999998

9.433962

5113

5311

4313

68

19



Germany

Belgium

Ireland

FranceAustria


Italy

443333

33

22.222222

22.22222211.11111111.111111

22.22222222.222222

8.333333

8.33333316.666667

8.3333338.33333316.66666716.666667

25

178

4217

8

8

8

4

124

1612128

20

3616

408

2824

84

However, some hiring is anticipated in growth businesses such as private banking and asset management. In which areas of the business do you expect headcount to change?*


20

20

6020

40

20

4020

2020

20


Spain

Netherlands


Nordics

Switzerland

Poland

UK



Operations and IT

Corporate bankingPrivate banking and wealth management

Asset managementCompliance, risk and finance

12.5

12.512.512.512.5

12.5

1313

2538

50

13



Operations and ITCorporate banking

Private banking and wealth managementAsset management


5038

1325

3825

1313

25

12.5

12.512.5

11.111111

11.111111

5633

442222

44

5622

56

2211

11.111111

11.11111111.111111

1071014

2171414

24

4134

244141

2131

1717


And most markets anticipate an increase in compliance staff, except in Austria, the Nordics, Poland and Spain.In which areas of the business do you expect headcount to change?*


Section 6

Outlook by market


Outlook by market

Market Financial performance

Headcount Compensation Strategic priority

Austria

Belgium

France

40% -30% -10%

18% -9% 0%

21% -14% 14% 71%

91%

Highest strategic priorities

60%

Net number of respondents anticipating improvement (∧)/ worsening of financial performance (∨).Net number of respondents anticipating headcount increase (∧) / decrease (∨).Net number of respondents anticipating compensation increase (∧) / decrease (∨).

1) Risk management 2) Streamlining processes, further automation

and investing in technology 3) Minimizing all non-essential expenditure and

cutting costs

Investing in new customer-facing technology, e.g., mobile solutions

1) Risk management 2) Cybersecurity and data security

Highest strategic priority


Risk and regulation Cost cutting and efficiency Innovation and growth




Germany

Ireland

Italy

Outlook by market

-11% -46% 25%

71% 19% 38%

45% -21% -3% 67%

71%

67%


Highest strategic priorityRisk management

Highest strategic priorityCybersecurity and data security

Highest strategic priorityStreamlining processes, further automation and investing in technology





Netherlands

Nordics

Poland

1) Capital, liquidity and the leverage ratio2) Reputational risk3) Compliance with capital markets regulations

(e.g., MiFID II/EMIR)

Outlook by market

56% -44% -44%

36% -50% 7%

-58% -42% -9% 92%

64%

89%



Highest strategic priorityCapital, liquidity and the leverage ratio

Highest strategic priorityInvesting in new customer-facing technology, e.g., mobile solutions



Outlook by market



Spain

Switzerland

UK

44% -44% 0%

9% 9% 36%

53% -26% -12% 91%

82%

100%


Highest strategic priorityReputational risk

Highest strategic priorities1) Risk management 2) Capital, liquidity and the leverage ratio

Highest strategic priorityCapital, liquidity and the leverage ratio



Section 7

Contacts


Contacts

France

Luc Valverde+33 1 46 93 63 [email protected]

Germany

Dirk Müller-Tronnier+49 6196 996 [email protected]

Ireland

Cormac Murphy+35 3 1221 2750 [email protected]

Italy

Massimo Testa+39 02 7221 [email protected]

Netherlands

Alexander Beijer+31 88 407 [email protected]

Nordics

Lars Weigl+46 8 520 590 [email protected]

Poland

Dominik Januszewski+48 22 557 [email protected]

Spain

José Carlos Hernández Barrasús+34 91 572 [email protected]

Switzerland

Olaf Toepfer+41 58 286 [email protected]

UK

Robert Cubbage+44 20 7951 [email protected]

EMEIA

Marie-Laure Delarue+41 58 286 [email protected]

Karl Meekings+44 20 7783 [email protected]

Austria

Friedrich Hief+43 1 21170 [email protected]

Belgium

Philippe Desombere+32 2 774 [email protected]

For more information on how we can help, please contact our team:


EY | Assurance | Tax | Transactions | Advisory

About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

About EY’s Global Banking & Capital Markets Center

In today’s globally competitive and highly regulated environment, managing risk effectively while satisfying an array of divergent stakeholders is a key goal of banks and securities firms. EY’s Global Banking & Capital Markets Center brings together a worldwide team of professionals to help you succeed – a team with deep technical experience in providing assurance, tax, transaction and advisory services. The Center works to anticipate market trends, identify the implications and develop points of view on relevant sector issues. Ultimately it enables us to help you meet your goals and compete more effectively.

© 2016 EYGM Limited. All Rights Reserved.

EYG no. 00086-164GBL

ED 0318

This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice.

ey.com/ebb