The McKinsey Global CIB 50 is a snapshot of global corporate and investment banks. Up until this year such a ranking had not been possible. However, with greater public disclosure and improved reporting by global banks, we can now put together a robust list. We recognize that these corporate and investment banks have very different business mixes, so the list isn't a substitute for detailed benchmarking. We also accept that operating profit may not be the best measure of profitability. That said, we still believe that this ranking is an interesting and useful reference for senior executives.
With the growing convergence in corporate and investment banking, almost all these players compete with one another in some form. Taking a broad view of the industry may help financial institutions develop more effective strategies.
We plan to publish this list annually and expect that over time it will provide insights into the changing competitive landscape. Even with this two-year view, some interesting trends (or nontrends) emerge. For instance, there is no evidence that the larger corporate and investment banks are growing faster or have better margins than smaller firms (exhibit). Some industry leaders argue that there will be significant advantages to global scale. If this holds true, a growing concentration should be evident in future rankings.
Methodology
All data were gathered from annual filings and investor presentations. We ranked the institutions on reported full-year 2005 revenues from corporate- and investment-banking activities. For most institutions, these figures include revenues generated from advisory and underwriting, sales and trading, syndicated lending, and transactions services.
Where banks directly report CIB revenues, we used those numbers. Where possible, we excluded small and midsize businesses. For banks that do not break this segment out, we included the revenues from these businesses and the numbers remain overstated to that extent. We also excluded the asset-management divisions of most firms, except in the few cases where the numbers are not reported separately.
Please direct queries and requests for detailed notes on the methodology for each bank to mckinsey_on_cib@mckinsey.com. We also welcome comments on the value of this ranking and on the methodology used to determine it. 