March 4, 2025 — By deepening ties with existing clients, corporate banks in Europe will optimize resource and balance-sheet deployment by driving higher yields from individual companies with which they already do business.

“Traditionally, both European and foreign banks have strived to achieve growth in Europe by adding new corporate relationships and expanding their footprints across the region,” says Tobias Miarka, Global Head of Corporate Banking at Crisil Coalition Greenwich and co-author of Corporate banks in Europe target existing clients for growth. “Today, these large banks are much more focused on maximizing returns from their existing corporate clients.”

New Crisil Coalition Greenwich data highlights the rationale behind that strategy. Banks that deploy balance sheet to European companies all hope to be rewarded with lucrative business in debt capital markets, cash management, trade finance, foreign exchange, interest-rate derivatives, structured finance, equity capital markets, or M&A. Lead banks outperform in that regard by a wide margin, capturing a disproportionate share of companies’ overall wallet. 

Wanted: Lead Banks with Strong International Capabilities
In general, large banks are capturing lead relationship positions from the long tail of smaller regional and national corporate banks as companies replace them as lead banks. This is due, in large part, to the lack the international capabilities European companies increasingly need in a growing, diversified global marketplace.

“The need for enhanced international coverage is driving European corporates to end longstanding lead bank relationships with domestic champions and regional players in favor of larger banks with robust international networks and capabilities,” says Tobias Miarka. 

Corporate banks in Europe target existing clients for growth analyzes major trends in European corporate banking, including the increasing concentration of lead bank relationships with large banks, the growing importance of international networks and capabilities, and how European companies are shoring up their balance sheets to prepare for a possible economic downturn.