FOR
IMMEDIATE RELEASE
Marketing Department
Robert E. Nolan Company
972-248-3727
mailbox@renolan.com
www.renolan.com
NOLAN ANNOUNCES
RESULTS OF ANNUAL BANK PERFORMANCE STUDY
Study reveals line-of-business performance
impacts from economic downturn and shifts in customer behavior
DALLAS, TX— (Business Wire)—Top-performing
banks operate at a 15-percent overall efficiency ratio advantage
over average banks, and the statistics are telling in several
lines-of-business.
For example, it is widely known that branch transactions are
dropping year over year due to customers’ increasing use of
electronic transactions. Nolan’s study reveals that the
highest-performing banks excel at managing this trend.
Top-performing banks last year had a teller productivity drop of
just 7% while the average banks’ teller productivity dropped by 21%,
almost equaling the industry drop in branch transaction volume.
Other lines with large performance gaps include credit
operations, where the study shows top-tier banks operate with 59%
less cost than average banks. Compliance interpretations and
regulators’ comments to individual banks on portfolio monitoring may
be influencing that significant gap.
These are just two of the hundreds of findings from the Nolan
2011 Bank Performance Benchmarking Study. The study is conducted
annually by the Robert E. Nolan Company, a management consulting
firm specializing in the banking industry since 1973.
The Nolan study provides an analysis of bank efficiency and
productivity by line-of-business at a much more granular level than
other banking industry peer-group studies. Nolan generates over 700
performance measures to examine the impact of each line-of-business
on overall bank efficiency. The study pinpoints gaps in performance
for each participant that, if narrowed, will result in significant
bottom-line improvement.
Other study findings include:
