The FT analysis says that global, one-stop banks have typically been producing annual returns averaging five per cent over the last five years - while more specialist retail or investment banks have been getting closer to double figures. The FT says: 'There is always an excuse — fines, new rules, restructuring charges, tough conditions in one market or another....'

Failing business model

While the big banks should actually be getting scale benefits - especially in areas such as 'the growing costs of compliance and IT' - the analysis suggests that they are getting the opposite. One such problem is that the biggest banks are required by regulators to hold larger amounts of capital. In conclusion, the newsapaper suggests that universal banks are 'a failing business model' which needs to be rethought and changed.  Source: Financial Times