A new survey from PricewaterhouseCoopers suggests that the biggest value-for-money investments are being made by banks and credit unions.
The firm says it has compiled a list of projects that offer the best chance of generating more than £10m of returns over their lifetime.
The survey covers the capital and non-capital investment sectors of the financial services industry, with a focus on the areas of business finance, investment banking and investment banking advisory.
It is based on an analysis of more than 3,500 projects across a wide range of industries.
What do the projects offer?
“The top five most promising projects in terms of potential returns are: “The RBS project” (project plan), (business finance), “the HSBC project” (business advisory), “a new branch of Credit Suisse” (credit), (“investment banking”), and (“advisory”), (investment advisory).”
“The Barclays project” is “the biggest return on capital in the UK, worth an estimated £7.5bn in 2020” and “the Barclays Bank project” (financial services), is “the best value”.
“The UK’s second largest bank, Royal Bank of Scotland, is looking to add a branch in Manchester to help boost its market share and attract more investors to the city,” it added.
“The Bank of Ireland is looking at a new headquarters in the city, and it’s the second-largest bank in the country, with plans to open a new branch in Dublin.”
What are the risks?
“A range of projects face a range of potential risks, and the research reveals that these include: “A major risk facing banks is the threat of insolvency” (project benefits), and “risk is a concern for the investment banking industry” (advisory).”
The research suggests that a large portion of these projects may not be viable or that they have significant potential risks.
“It is also important to note that these are the only projects listed in the report, and that the findings can be changed by a project approval process, so you may want to be prepared to make some changes to your plans.”
Are there any big winners?
“There is no obvious winner from this list, but it’s worth noting that the most successful projects were funded by the banks themselves, and many of them were the best investments in the history of the industry,” PricewaterhousesCoopers chief research officer David Jones said.
“They have all demonstrated the ability to deliver value for the money.”
How to get involved?
The list includes some of the biggest names in the financial markets, including Barclays, the Royal Bank, HSBC and Lloyds, which will all benefit from the investment of the money.
You can take part in the project by providing your email address, and clicking “I agree to the terms and conditions of the survey”.
“We will ask you questions about your investment history and whether you are ready to make an investment in a particular project, including your overall risk tolerance,” the report said. Read more: