Analyzing retail banking industry: Key metrics and stock performance

Retail banking is becoming a trend for commercial banks all over the world. In addition, recent competitive pressures have progressively driven retail banks to strategically focus on generating returns to shareholders. This study aims to analyze and provide a summary about the impacts of featured and standard metrics on the effectiveness and efficiency of retail banking operating results which reflects on the shareholder return of these banks in different regions around the world. This study examines some key metrics for retail banks, and analyzes annual financial and operating data of some biggest retail banks around the world to find out whether there is positive or negative linear relationship between stock returns and each key metric of these banks. This study also finds out some useful multiple regression models between stock returns and key metrics.