Banking

Banking

Business summary1

  • Total revenue £183m up 5%
  • Total order intake £90m down 1%
  • Operating profit £35m up 52%
  • Resilient performance built on core strengths
  • First Misys BankFusion Universal Banking go-live
  • New partnerships adding value for customers
  1. Financial performance measures reported on a like-for-like basis. See the financial review for a reconciliation to as reported measures.

Delivery updates

Get fit: completed (Mar 07-May 08)

  • Deliver next-generation platform, Misys BankFusion (achieved)
  • Expand in growth geographies: India, China, Eastern Europe (achieved)

Win more: started (1-2 years)

  • Target 3-5% revenue growth1 (achieved 2008/09)
  • New technical solution for our core banking products based on BankFusion platform
  • Open platform Application Programme Interface to partners (achieved)
  1. Growth target published in announcement on 23 October 2008 ‘Group Revenue Growth Reiterated’.

Lead: ongoing (2-4 years)

  • Grow Misys BankFusion developer community
  • Maintain add-on module pipeline for cross-sell
  • Leader in core banking platform
Our business

We have worked with the world’s leading financial institutions for more than three decades, combining expert knowledge of banking markets with deep technical expertise to address their critical business issues. We have the largest installed customer base of any banking software provider and have a strong presence in all major established and developing geographies.

Our customers

We support everyone from Tier 1 global banks and institutions - including all of the world’s top 50 banks - to small regional banks and customers in emerging markets. Our solutions are helping customers achieve improvements in revenue, performance and efficiency across retail, corporate, wholesale and universal banking. Customers use our comprehensive, integrated solutions to streamline operations, launch new products, reduce costs, improve customer satisfaction, increase revenues and reduce risk.

Priorities and actions
We achieved a strong relative performance in a tough market

Customers in Europe and the US had a very challenging year, and all banks have faced extremely demanding circumstances. Many top-tier organisations - especially those impacted by the liquidity crisis - chose to delay major IT investments. Towards the end of the year we also saw increasing regulatory anxiety, with some governments encouraging national banks to source locally. This influenced investment decisions.

Despite these dynamics, we grew revenue from existing customers and won 12 new customers. We also found new opportunities in growth areas such as risk, regulation, compliance, letters of credit and inter-bank loan syndication. Our global footprint, installed base and strong relationships with Tier 3 and Tier 4 banks gave us resilience, with many smaller banks continuing to make investments in technology. We also benefited from the non-discretionary nature of our solutions. Put simply, many customers rely on our systems for fundamentally important day-to-day operations, and they continued to invest to maintain and enhance performance, extend their current license and increase the volumes on current systems.

Misys BankFusion Universal Banking solution based on Service Orientated Architecture (SOA)

Last year we launched a vital new solution and platform: Misys BankFusion Universal Banking. This component-based core banking platform now provides a common framework for our solutions development. Highly flexible, interoperable and scalable, it enables customers to respond faster to opportunities while reducing costs. This year we passed a major test with the implementation of our first Misys BankFusion Universal Banking solution. This successful go-live has demonstrated the practicality and benefits of the platform and the solution, and we are now in a very strong position to compete for new Universal Banking customers.

We are extending partnerships to add value for customers

Working with strategic partners such as Digital China has enabled us to enter emerging markets faster. Partnerships have also enabled us to address new market opportunities and provide greater value to customers. For example, this year we became an approved reseller of IBM middleware, which enables us to increase revenue while reducing the need for our customers to source and integrate certain components. We also agreed a partnership with Finantix, to pre-integrate wealth management components into our solutions. And we are developing a very powerful relationship with HCL, which now works with us as lead partners, development partners and project and programme managers, as well as providing expert support for some of our own systems.