Announcing the 2015 Greenwich Share and Quality Leaders

BNP Paribas Leads Market with Banking and Cash Management; HSBC Tops in Debt Capital Markets

The banking groups used by large European companies are shrinking. After briefly spiking during the global financial crisis, the average number of banks servicing big European companies has returned to a downward trajectory that started a decade ago.

In a new report from Greenwich Associates, European Companies Turn to Foreign Banks, the typical large European company (with at least EUR500m in turnover) used approximately 12 banks, with two-to-three of those banks considered lead relationships a decade ago while today the overall average has declined to fewer than 10 banks, with approximately two lead relationships.

Surprisingly, large European companies are not necessarily replacing top-tier European and global banks from the same pool, or even from the relatively large group of regional European banks and national champions. In fact, the number of banking relationships held by mid-tier European banks is actually on the decline. One reason: In a growing number of cases large European companies are turning to a new resource: foreign banks specializing in specific international markets.

International Banking Needs on the Rise
Greenwich Associates research shows regional banks from Asia and Latin America are winning a share of relationships formerly held by European banks as growing numbers of companies are crossing the threshold at which they require specialized, local coverage in specific foreign markets.

“Large regional banks from Brazil and other markets are winning relationships with the very biggest European companies, who have the most extensive overseas operations and the most extensive banking needs,” says Greenwich Associates consultant Dr. Tobias Miarka. “These banks are already setting their sights on the next tier of large European corporates with fast-growing businesses in the banks’ home regions.”

One additional factor could be at play: regulatory impact. Non-European banks from developing counties with less stringent regulatory frameworks could be enjoying an advantage over competitors domiciled in developed and more highly regulated markets.

2015 Greenwich Leaders in European Large Corporate Banking
Within this continuously evolving marketplace, BNP Paribas has established itself as the clear leader in pan-European corporate banking.

Across Europe, 58% of large companies use BNP Paribas for corporate banking services, followed by HSBC at 51%, Deutsche Bank at 48%, RBS at 43%, and the only non-European player in the group, Citi, at 39%. These banks are the 2015 Greenwich Share Leaders in European Top-Tier Large Corporate Banking. The 2015 Greenwich Quality Leaders for Europe are BNP Paribas, Commerzbank, Deutsche Bank, and UniCredit.

Within the Eurozone, two thirds of large companies use BNP Paribas for corporate banking, followed by Deutsche Bank at 54%, HSBC at 50%, UniCredit at 47%, and Commerzbank at 42%. These are the 2015 Greenwich Share Leaders in Eurozone Large Corporate Banking. The Greenwich Quality Leaders within the Eurozone are BNP Paribas and Deutsche Bank.

2015 Greenwich Leaders in European Large Corporate Cash Management
In cash management, BNP Paribas leads with a market penetration score of 36% across Europe and 45% within the Eurozone. On a pan-European basis, HSBC ranks second in cash management, followed by a tie between Citi and Deutsche Bank and, finally, RBS.

In the Eurozone, Deutsche Bank places second in market penetration, followed by UniCredit, HSBC and a tie between Commerzbank and Citi for fifth place. These banks are the 2015 Greenwich Share Leaders in European Top-Tier and Eurozone Large Corporate Cash Management respectively. The 2015 Greenwich Quality Leaders in Cash Management are Deutsche Bank and UniCredit within the Eurozone and BNP Paribas, Deutsche Bank and UniCredit across all Europe.

2015 Greenwich Leaders in European Debt Capital Markets
The list of Greenwich Share Leaders in European Debt Capital Markets is led by HSBC with a market penetration score of 29%, followed by BNP Paribas, Deutsche Bank, J.P. Morgan, and Barclays, all which are tied with market penetration scores of 24-25%. The 2015 Greenwich Quality Leaders in European Debt Capital Markets are Deutsche Bank and J.P. Morgan.