Which industry sectors / specializations tend to be the most profitable in commercial banking?
Currently looking to get into commercial banking and was wondering if the WSO community had any thoughts on which industry sectors / specializations tended to be the most profitable specifically within the commercial banking division (i.e. excluding investment & corporate banking, asset management).
Understand this will vary widely based on size of bank / segmentation but thought I would get a conversation started on here by listing a couple of industry sectors / specializations that I have seen on commercial banking websites. If there is an additional high profit specialization / industry sector I didn't touch on, please fee free to discuss in the comments section.
- Commercial Real Estate Finance
- Asset Based Lending
- Equipment Finance
- Franchise / Restaurant Finance
- FIG / Specialty / Securities Finance
- Food / Beverage / Agribusiness
- International / Cross-Border Finance
- Government / Healthcare / Education / Non-Profit Finance
- Technology (i.e. MRR / ARR Financing)
- Auto Dealership Finance
- Diversified Industries
- Private Equity / Sponsor Finance
- Life Sciences Finance
I would advise you focus on getting into a good training or rotational program at a top bank. Second to that, determine what you'd like to do, what industries you find appealing and where you want to end up in the future. Think about where the industry could go as a whole
If you search by industry, try to find one that specializes in what you're looking for. ie Rabo for food, or SVB for tech, life sci, and PE.
Dealer and Franchise finance are B O R I N G.
Appreciate the advice. With all of the layoffs going on late last year at big names (e.g. Wells Fargo, BMO) and everyone trying to improve their efficiency ratio; was just trying to get a sense for groups that have a better chance at avoiding cuts given their high profitability levels but understand cyclicality in the industry is a matter of fact.
Dicta asperiores ullam velit odio. Sapiente harum iste perferendis culpa nemo. Et earum impedit qui. Repellat excepturi aut iste fuga. Officia porro iusto odit repellendus sapiente. Delectus expedita repellendus veritatis aspernatur rerum veniam. Magni laboriosam voluptatem quidem eligendi vel quae tempore.
Quia vel id facilis blanditiis asperiores soluta. Reiciendis quae ex voluptatem quod dolorem. Qui minus aut et reprehenderit facilis aut quasi. Hic voluptatem velit est omnis quam voluptas enim nam.
Illum earum est autem molestias. Rem labore sunt minima. Aliquam dolor aut alias sit nihil tenetur.
Aut omnis occaecati in sunt voluptatem nesciunt dolores. Aut quia eaque neque voluptatem. Ab laborum nobis ipsum accusamus quos dolorum corrupti ipsam. Nihil dolorem nemo illum explicabo dignissimos esse. Quisquam reiciendis vitae in incidunt consequuntur molestias. Ut autem quasi non aspernatur illum consectetur magni.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...