Corporate and investment banks (CIBs) could lift profits by 20% to 30% above current levels by implementing a four-part “strategic agility” framework, with sharper risk management—particularly around geopolitical uncertainty—playing a central role.
CIB executives should pinpoint “four or five factors that are most critical to their franchise, based on sector and client exposure,” according to a McKinsey & Co. report released in December 2025.
The consultancy said an early priority should be strengthening organisational preparedness. This could include setting up, or enhancing, a dedicated “nerve centre” to track country-level developments, sector and client activity, and any necessary adjustments to operating models.
Banks are also encouraged to quickly identify emerging product needs and evaluate heightened risk exposures across business lines or segments.
The final phase involves taking “no-regret” actions that help manage uncertainty while positioning for long-term growth, McKinsey said.
“These steps include equipping frontline teams to hold informed client conversations, reassessing product offerings during periods of volatility—such as broadening working capital credit lines—and updating strategy based on different scenarios,” the report added.
McKinsey noted that CIB divisions are also likely to face intensifying competition from specialised challenger firms, alongside mounting geopolitical and technology-related risks.
Click here for more on Banking
