Dow Jones Survey of CFOs Shows Loss of Trust in Investment Banks, High Level of Satisfaction With Investment Bankers
09 Novembre 2009 - 10:00AM
PR Newswire (US)
Banker Relationship and Commitment to Customer Keys to Winning and
Keeping Clients NEW YORK, Nov. 9 /PRNewswire/ -- A Dow Jones &
Company survey of top financial executives found that while
investment banks may have lost their clients' trust, investment
bankers themselves have managed to maintain client confidence and
loyalty. Of more than 220 chief financial officers, treasurers, and
heads of mergers & acquisitions and debt capital markets
surveyed across 13 global industry sectors, 27% said they had lost
trust in banks, mainly due to fear of insolvency. However, survey
respondents blamed the actual institutions, not the bankers, and
were satisfied with their bankers in all areas ranging from ability
to provide analysis to banker support and involvement. The most
important factor that respondents considered when choosing a bank
was the relationship with the bank and the bank's commitment to the
customer. The survey, titled "Less Love, Less Money: C-Suite
Insight for Investment Bankers," was commissioned by Dow Jones
Investment Banker's editorial team in conjunction with London-based
research and consultancy firm ClientKnowledge, to identify the
trends and issues of most importance to corporate finance
executives and departments. Survey respondents cited J.P. Morgan as
their number one investment bank when it comes to providing debt
and equity capital markets and mergers & acquisitions. Deutsche
Bank closely trailed J.P. Morgan in both debt and equity capital
markets while Goldman Sachs was ranked second for mergers and
acquisitions. "Banks may need to be more flexible and provide
increasingly tailored services to attract and retain clients," said
Adam Smallman, global managing editor for investment banking, Dow
Jones & Company. "Building a deeper, more knowledgeable
relationship with clients may help to bring back trust at the
institution level." In regard to accessing capital, most
respondents said that it is easy; however; nearly one third are
experiencing difficulties. When analyzed by industry, the responses
showed that countercyclical and cash-positive industries are
getting more attention. For example, 100% of healthcare responses
indicated raising capital is easy, whereas 60% of those in the
automobile industry said they are finding it difficult.
Additionally, the survey revealed that access to credit is more
difficult and, if found, the terms are tougher and transaction fees
are on the rise. Sixty-four percent thought that transaction fees
have increased, with transaction-based fees representing 56% of the
fees charged. "The lack or high cost of capital is preventing deals
getting done in the industries requiring restructuring, such as
automobiles," said Justyn Trenner, CEO and Principal,
ClientKnowledge. Smallman added, "Greater care for clients includes
bankers generating fresh thinking relevant to the specific needs of
their clients. This research shows that trust has been lost but it
can be earned back." An overview of these finding can be found at
http://www.dj.com/djib/CSuiteInsight. For more information about
Dow Jones solutions for investment bankers, visit
http://www.solutions.dowjones.com/investmentbanker. For more
information about Dow Jones, visit http://www.dowjones.com/. About
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