“Remind people that profit is the difference between revenue and expense. This makes you look smart.” –Scott Adams
In the past three years bank loan portfolios are down about 10% or $800 billion. At a 2% spread over the current cash/investment return, that’s more than $15 billion in revenue and more a hit than the Durbin Amendment is likely to cost. The headlines in the past weeks have confirmed for bankers that no macro events are likely to help all balloons rise in the near future. It’s a brutal game of patching holes, pumping air with our lungs and steering clear of the trees.
It’s going to take a lot of pumping from every business unit, branch and relationship manager.
Any executive or CFO who thinks that a “just do it” mentality will work in driving revenue growth is naïve at this point. It’s going to take a great deal of insight, creativity and accountability to knock out revenue in the years ahead. For GonzoBankers peering into 2012, there are five key priorities for driving revenue growth:
Executives developing their 2012 and beyond financial plans should be working to drill down how these components will help contribute to renewed revenue growth.
So, GonzoBankers, as your executives gather for what’s sure to be a sweat-filled series of planning and budgeting meetings, make sure you cover these key discussion questions:
It’s time to drill down on sources and opportunities for revenue generation, GonzoBankers. The balloon is spitting helium and headed toward the power lines. Let’s all start pumping.
-spw
At Cornerstone Advisors, we’ve seen how opportunities for revenue growth battle expense reduction for top consideration in a financial institution’s long-term goals and objectives. We’ve assisted hundreds of banks and credit unions tackle this challenge in their strategic planning efforts.
Let us help develop your organization’s Strategic Plan and you’ll realize:
Contact us today. Together we’ll start drilling down on sources and opportunities for revenue generation.