Temenos Ag · SIX:TEMN
Temenos — Investor Day (December 2011)
17 slides from Temenos's investor day presentation, Dec 2, 2011
Slide 1: Harnessing the forces of change: Has the time for global core banking arrived?
Harnessing the forces of change Has the time for global core banking arrived? João Caldeira 2 December 2011
Slide 2: Agenda
Agenda The banking market and the forces of change The core banking opportunity Deloitte in the core banking arena 2 Harnessing the forces of change © 2011 Deloitte MCS Limited
Slide 3: Banking has yet to return to 2006 earning levels
Banking has yet to return to 2006 earning levels US Banking Industry Earnings $Billions Euphoria Crisis Stabilization 141 130 102 ? 85 ? ? 80 10 -5 2005 2006 2007 2008 2009 2010 2011E1 2012E2 2013E2 2014E2 1 2011 earnings based on average industry growth of 6.4%. Industry average based on average gr
Slide 4: Top global banks have witnessed a decline in revenues
Top global banks have witnessed a decline in revenues Revenue (USD million) 180000 135,161.0 160000 116,323.0 115,475.0 110,657.0 102,477.6 140000 99,125.0 96,641.2 91,171.0 85,292.7 120000 USD million 80,984.9 80,390.1 79,705.1 72,933.5 72,566.6 64,673.4 100000 63,702.9 61,224.6 58,003.9 57,446.4 5
Slide 5: Operating expenses for most of the banks have increased during the last five years
Operating expenses for most of the banks have increased during the last five years Operating Expenses (USD million) 68,888.0 80000 55,304.0 70000 60000 38,029.0 37,688.0 35,975.1 USD million 35,864.1 34,472.0 33,553.0 31,963.7 31,674.5 30,124.8 50000 28,159.6 24,668.0 24,120.0 23,932.0 22,757.8 21,4
Slide 6: Increasing operating expenses and decreasing revenues are resulting in a rise in cost/income ratio
Increasing operating expenses and decreasing revenues are resulting in a rise in cost/income ratio for top banks Cost to Income (CI) ratio 130.1 140 101.9 120 90.8 100 81.3 % CI Ratio 76.6 75.8 73.1 73.1 73.1 71.9 70.0 69.9 69.0 68.7 68.4 68.1 67.9 65.1 64.8 63.6 63.2 62.8 62.6 80 62.1 61.8 61.4 61.
Slide 7: Major trends affecting FSIs
Major trends affecting FSIs Changing Demographics Globalisation Reputation & Ethics • Ageing population, retirement • By 2015, 60% of global GDP will • The reputation of major global length set to increase come from the BRIC banks has been significantly • High migration flows (US, UK, • 34% of CFOs
Slide 8: 5 out of the 10 biggest global banks (2010) are from developing countries
5 out of the 10 biggest global banks (2010) are from developing countries Ranking of Top 10 banks (by market capitalization) Rank Bank Country Market cap (USD) 1 ICBC – Industrial and Commercial Bank of China China 219 bn 2 HSBC UK 178 bn 3 China Construction Bank China 168 bn 4 JP Morgan Chase US 1
Slide 9: Returning to historical revenues will be challenging...
Returning to historical revenues will be challenging... Economic recovery uncertainty Return to economic growth, double dip, or new normal? Capital Compliance Competition Customers • Capital is no longer a • Still uncertain regulatory • New entrants (Tesco, • Economically damaged ‘commodity’ environ
Slide 10: Addressing these issues implies focus and resilience
Addressing these issues implies focus and resilience Remediate Comply Restructure Grow Build Risk Acquire, Sell, Get Increase Revenues Fix What is Broken Management Efficient Without M&A • Fixing Technology • Data Management • Acquisition • Data Analytics • Mortgage Foreclosure • Compensation • Dive
Slide 11: Agenda
Agenda The banking market and the forces of change The core banking opportunity Deloitte in the core banking arena 11 Harnessing the forces of change © 2011 Deloitte MCS Limited
Slide 12: Legacy Systems. Not enough?
Legacy Systems. Not enough? Legacy Symptoms Root Causes Processing • Limited single customer view • Products processed by silo Silos • Data changes required in applications several places • Several customer databases • Compliance always a • Range of very old to very new Batch challenge systems – oft
Slide 13: Core banking opportunity for standard packages
Core banking opportunity for standard packages Vendors’ counted 2010 global banking platform deals Source: Forrester research * With a total of eight solutions, including 18 Horizon new named deals Total Deals: 308 Deals In one year, only c.1.5% of banks adopted leading standard packages… 13 Harness
Slide 14: Agenda
Agenda The banking market and the forces of change The core banking opportunity Deloitte in the core banking arena 14 Harnessing the forces of change © 2011 Deloitte MCS Limited
Slide 15: Deloitte and Core Systems Transformation
Deloitte and Core Systems Transformation Deloitte has a Global Core Systems Transformation proposition, focusing on all sectors of FSI – Banking, Insurance, Capital Markets and Wealth Management Our hypothesis Past incremental investment in IT is the industry’s greatest competitive weakness, locking
Slide 16: Deloitte experience with Temenos
Deloitte experience with Temenos Deloitte has entered into a global agreement with Temenos, supported also by local country agreements, targeted at delivering projects, joint collaboration in selected markets and opportunities, methodology alignment and training Activities Description Engagements •
Slide 17: Deloitte.
Deloitte.