SingleDealerPlatforms.Org

Well, after nine years as #1 FX bank in the world, the ‘Mighty Deutsche’ has finally been toppled by Citigroup, who have been steadily gaining market share since 2008, and as the chart below shows it was only a matter of time before Citi overtook Deutsche.

Key findings from the EuroMoney 2014 survey:

• Citi takes 1st place, with a market share of 16.04% (up from 14.9% in 2013) and more than doubling its 7.49% share from 2008. (see here for Citi Velocity post which is built using Caplin technology)

• BAML sees largest gain in market share of top 50 up 1.3% to 4.38% (3.08% in 2013)

• RBS sees biggest fall in market share of top 50 down -2.37% to 3.25% (5.62% in 2013)

• Share of top 5 banks shows largest increase up 3.26% to 62.62% (57.36% in 2013)

• Share of lower ranked banks from 16-50 gain share, whilst banks ranked 6-15 lose market share

Top 12 banks rankings

The EuroMoney survey is still the most comprehensive and widely watched in the industry, and although a few banks have stopped lobbying clients to vote for them, I have no doubt that top ten or so banks,  a  fair number of bank e-commerce promotions are still decided by achieving, defending or missing key ranking positions.

Deutsche has eventually been toppled by Citi. A tremendous achievement by both Deutsche Bank in retaining the crown for so many years and by Citi, who have been continually increasing market share over recent years, as can be seen from the chart below.

Individual top 12 bank performance

When we look at individual bank performances, the charts below show both the change on the year (top chart) and the change in market share 2014-08 (bottom chart), and it really brings home the strength of Citi and the improved market share of HSBC and BAML, as well as the loss market share for Deutsche, UBS and RBS.

Segment results:

Turning to segment market share, the top five banks all saw increased market share with only three in the top ten losing market share. Overall the top ten increased market share by 2.03% to 79.43% (77.4% in 2013), which was the largest annual increase in top ten market since at least 2007. The biggest segment losers were the banks ranked 11-15, who saw their combined market share drop -2% to 8.7% (10.7% in 2013).

Largest movers in the banks ranked 20-50 (the regional banks)

Looking more closely at the regional banks we can see below the biggest change in ranking of banks, with National Bank of Canada jumping 18 places from 67th to 49th, whilst Saxo drops 12 places from 35th to 47th.

Largest Pct change in market share from 2008 to 2014

When looking at all banks, WestPac and Standard Chartered have shown the largest pct gains since 2008, whilst RBS and Saxo have seen the biggest pct drop in market share.

Client Segment Ranking

When looking at the ranking and change in market share of banks across client segments, you get a real sense of the bank’s core strength in each segment. The tables below show firstly the absolute ranking by client segment, and then the change in market share of ranking (color coded for rising and falling).

So, whilst Deutsche gained in all client segments, Citi only gained in four segments, but still the gains were enough to secure top spot. The largest segment gains come from Barclays in leveraged funds where they gained 5.38% market share..

 Regional Segment Ranking

Not sure how to read these figures, as some huge changes in market share in some of the smaller regions. For instance in Africa, the market share of UBS increased from by 15.45% (from 10.92% to 26.37%), which looks incorrect to me, as does the drop for Citi of -10.11% and Deutsche -9.61%. But nonetheless, the regional map is still interesting, as it shows the footprint of the global banks, and the reason why the regional banks are investing in their client facing technology in an effort to protect their client franchises.

The EuroMoney 2013 results are available here

Filed under: FX, Paul Blank, Survey Results |