Recently released market study: Germany Commercial Banking Report Q1 2011

Dec. 16, 2010 - PRLog -- Germany's stable macroeconomic backdrop and generally conservative lending practices will keep the country's banking sector relatively stable and insulated from the systemic ructions coming from  elsewhere in the eurozone. However, growth in foreign assets over the past decade leaves German banks exposed to a broader deterioration in asset quality abroad. We see no immediate risks of a peripheral  eurozone credit risk shaking up German banking sector stability, given the generally well capitalised nature of financial institutions and the propensity to save among the population. Nevertheless, we believe the deteriorating credit risk profile in Europe will affect the German banking sector for years to come in three key ways:    1. German banks will proceed with caution and raise provisions for troubled assets. Aggressive asset growth is therefore unlikely for some time to come.  2. As a result, net profit margins will be squeezed as banks reduce leverage and raise reserve ratios with Deutsche Bundesbank. More rigorous control of credit supply will be forthcoming.  3. The subdued growth outlook for Germany's economy, not least due to the export-oriented manufacturing sector, means that stronger domestic demand for credit will be hard to come by over the next few years until the export sector recalibrates towards more vibrant demand in emerging markets.      All Quiet on the Western Front    Since the beginning of the 2000s, German client loan growth has been highly conservative, growing at an average rate of 2.1% year-on-year (y-o-y) since the start of the millennium. Loan growth throughout the  1990s averaged well above 8.0% y-o-y and the banking sector's loan-to-deposit ratio at the start of the  2000s was over 150%. As a percentage of GDP, client loans peaked in 2001 at around 173% and have consistently trended lower, and are currently heading towards 160%, with the loan-to-deposit ratio at  127% in May 2010 (see chart).    Germany is well known for the frugality of its household sector and its relatively high savings rate (ie: the  proportion of income saved from disposable income), which was at 23.1% of GDP in Q110, compared to  France's 14.2% of GDP and Spain's 18.5% during the quarter. Not surprisingly, much of the emphasis of  German loan portfolios has shifted to foreign non-bank lending. The chart below illustrates how total  lending to foreign non-bank institutions rose to a quarter of total client loans in 2008. Though this has  started to unwind following Lehman Brothers' collapse and the global market sell-off in September  2008, the ratio of foreign loans-to-total lending appears to have edged higher again since the start of 2010  to 21.4%.

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Report Table of Contents:

Executive Summary
- Table: Levels (EURbn)
- Table: Levels (US$bn)
- Table: Levels At August 2010
- Table: Annual Growth Rate Projections 2010-2014 (%)
- Table: Ranking Out Of 59 Countries Reviewed In 2010
- Table: Projected Levels (EURbn)
- Table: Projected Levels (US$bn)
SWOT Analysis
- Germany Commercial Banking SWOT
- Germany Political SWOT
- Germany Economic SWOT
- Germany Business Environment SWOT
Business Environment Outlook
- Commercial Banking Business Environment Rating
- Table: Germany's Commercial Banking Business Environment Rating
- Commercial Banking Business Environment Rating Methodology
- Table: Developed States Commercial Banking Business Environment Ratings
Global Commercial Banking Outlook
- Table: Develop States Banks' Bond Portfolios
- Table: Developed States Commercial Banking Business Environment Ratings
- Table: Comparison Of Loan/Deposit, Loan/Asset And Loan/GDP ratios
- Table: Developments In 2010
- Table: Comparison Of Total Assets, Client Loans And Client Deposits, 2008-2009 (US$bn)
- Table: Comparison Of Per Capita Deposits, 2010 (US$)
- Table: Interbank Rates And Bond Yields, 2009-2010
Europe Banking Sector Outlook
Germany Banking Sector Outlook
Economic Outlook
- Table: Germany Economic Activity, 2007-2015
Competitive Landscape
- Market Structure
- Protagonists
- Table: Protagonists In Germany's Commercial Banking Sector
- Definition Of The Commercial Banking Universe
- List Of Banks
- Table: Top 50 Banks By Assets
Company Profiles
- Deutsche Bank
- Table: Stock Market Indicators
- Table: Balance Sheet (EURmn, unless stated)
- Table: Balance Sheet (US$mn, unless stated)
- Table: Key Ratios (%)
- Commerzbank
- Table: Stock Market Indicators
- Table: Balance Sheet (EURmn, unless stated)
- Table: Balance Sheet (US$mn, unless stated)
- Table: Key Ratios (%)
- Dresdner Bank
- Table: Stock Market Indicators
- Table: Balance Sheet (EURmn, unless stated)
- Table: Balance Sheet (US$mn, unless stated)
- Table: Key Ratios (%)
- Deutsche Postbank
- Table: Stock Market Indicators
- Table: Balance Sheet (EURmn, unless stated)
- Table: Balance Sheet (US$mn, unless stated)
- Table: Key Ratios (%)
- HypoVereinsbank
- Table: Stock Market Indicators
- Table: Balance Sheet (EURmn, unless stated)
- Table: Balance Sheet (US$mn, unless stated)
- Table: Key Ratios (%)
- DZ Bank
- Table: Stock Market Indicators
- Table: Balance Sheet (EURmn, unless stated)
- Table: Balance Sheet (US$mn, unless stated)
- Table: Key Ratios (%)
- KfW
- Table: Key Statistics For KfW, 2007-2008 (EURmn)
BMI Banking Sector Methodology
- Commercial Bank Business Environment Rating
- Table: Commercial Banking Business Environment Indicators And Rationale
- Table: Weighting Of Indicators

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.