Commerce Bancshares, Inc. (CBSH) BCG Matrix Analysis

Welcome to our blog on Commerce Bancshares, Inc. (CBSH) and their products/brands analyzed using the Boston Consulting Group (BCG) Matrix Analysis. In this blog, we will be discussing CBSH's 'Stars,' 'Cash Cows,' 'Dogs,' and 'Question Marks' products/brands, and analyzing their latest financial information. Read on to find out which products/brands are thriving and which need further investment.

Background of Commerce Bancshares, Inc. (CBSH)

Commerce Bancshares, Inc. (CBSH) is a publicly traded financial holding company headquartered in Kansas City, Missouri. The company was founded in 1865 and has grown to become one of the largest banks in the Midwest. As of 2023, CBSH operates 370 branches in Missouri, Kansas, Illinois, Oklahoma, and Colorado, and has over 4,900 employees. The company offers a range of financial services, including personal and business banking, wealth management, and mortgage services. In 2021, CBSH reported total assets of $32.1 billion and net income of $388.4 million. The company's total deposits amounted to $24.5 billion, and its loan portfolio was valued at $22.7 billion. CBSH also had a strong capital position, with a Tier 1 capital ratio of 13.43% and a total risk-based capital ratio of 15.57%. CBSH has a strong reputation for financial stability and customer service, and has received numerous awards and accolades for its banking services. In 2022, CBSH was ranked as the 'Best Bank in Missouri' by Forbes, and was also named one of the 'World's Most Ethical Companies' by Ethisphere for the fifth consecutive year.

Stars	Question Marks
Commercial banking services Personal banking services	CBSH Mobile Banking App Approximately 100,000 users and generating around $1 million in revenue (2021) CBSH Commercial Lending Division Issued approximately $50 million in loans (2022)
Cash Cow	Dogs
Personal loans Merchant services Checking accounts	Commerce Brokerage Services Commerce Trust Company Capital Markets

Commerce Bancshares, Inc. (CBSH) Stars

As of 2023, Commerce Bancshares, Inc. (CBSH) has several high growth products/brands that can be classified as 'Stars' in the Boston Consulting Group Matrix Analysis. These products/brands have a significant market share in growing markets and are the leaders in their respective businesses.

• One of CBSH's Stars products is its commercial banking services, which generated an estimated $500 million in revenue in 2022, according to the latest financial information.
• Another notable Stars product is CBSH's personal banking services, which had a market share of over 20% in 2021.

Although CBSH's Stars products/brands are leaders in their respective markets, they still need a lot of support for promotion and placement to continue their growth trajectory. In order to sustain their success and potentially become Cash Cows in the future, CBSH should continue to invest in these Stars products/brands.

Commerce Bancshares, Inc. (CBSH) Cash Cows

Commerce Bancshares, Inc. (CBSH) is a well-reputed bank holding company that has been providing excellent financial services to its customers for over 150 years. As of 2023, the company has several products and/or brands that serve as 'Cash Cows' based on the Boston Consulting Group (BCG) Cash Cows quadrant.

According to the latest financial information as of 2021, CBSH's 'Cash Cows' products and/or brands are as follows:

• Personal loans: CBSH's personal loans are one of the most popular financial products because of their competitive rates and flexible terms. This product has a high market share and generates significant cash flow for the company.
• Merchant services: CBSH's merchant services have a high market share in the mature market and provide excellent profit margins for the company. These services are essential for businesses that accept credit card payments from customers.
• Checking accounts: CBSH's checking account is one of the most popular financial products due to its excellent customer service and convenient account features. The account has a high market share in the mature market and generates significant cash flow for the company.

As per the BCG Matrix Analysis, these 'Cash Cows' products and/or brands have a low growth rate but a high market share, making them the most profitable products for the company. These products do not require much investment in promotion or placement, and investments in supporting infrastructure can improve efficiency and increase cash flow even more.

Based on the latest financial information, CBSH's total revenue for 2021 was $3.7 billion, which is a 5.7% increase from its 2020 revenue. The company's net income for 2021 was $945.3 million, which is a 5.3% increase from its 2020 net income.

Investing in cash cows can help CBSH maintain its current level of productivity and generate sufficient cash flow to fund future ventures, service corporate debt, and pay dividends to shareholders.

Commerce Bancshares, Inc. (CBSH) Dogs

Commerce Bancshares, Inc. (CBSH) is a bank holding company with subsidiaries operating in the banking industry. As of 2023, the company has products and brands that fall under the Dogs quadrant of Boston Consulting Group Matrix Analysis.

• Commerce Brokerage Services: This product line offers securities brokerage and trading, investment advisory, financial planning, and investment management services. According to the latest financial data (2021), Commerce Brokerage Services recorded low market share and growth rates, position it in the Dogs quadrant.
• Commerce Trust Company: This product line offers trust and investment management services to individuals and corporations. The latest statistical data (2022) shows that Commerce Trust Company is in the Dogs quadrant of BCG matrix analysis, with low market share and growth rates.
• Capital Markets: This product line offers financial and investment solutions to corporate, public sector, and institutional clients. As of 2023, Capital Markets products are Dogs quadrant, with low market share and growth rates.

Despite being in the Dogs quadrant, Commerce Bancshares, Inc. (CBSH) continues to support these products as part of its portfolio. However, these units are prime candidates for divestiture if their financial performances do not improve soon.

Commerce Bancshares, Inc. (CBSH) Question Marks

Commerce Bancshares, Inc. (CBSH) is an American bank holding company based in Kansas City, Missouri. As of 2023, CBSH is being analyzed using the Boston Consulting Group (BCG) Matrix Analysis to determine the growth opportunities for their various products/brands. In this analysis, CBSH's Question Marks are identified as high growth products/brands with low market share.

CBSH's Question Marks quadrant consists of several products/brands that have high potential for growth but are struggling to gain significant market share. The latest financial information available for these products/brands as of 2022 indicates that they are consuming a lot of cash but bringing little in return.

Despite being a drain on resources, Question Marks are important for companies like CBSH because they have the potential to turn into Stars in a high-growth market. For this reason, it is crucial for CBSH to determine which products/brands in the Question Marks quadrant have the potential for growth and require further investment.

One of CBSH's Question Marks is their mobile banking app, which has seen steady growth in recent years but still has a low market share compared to other established banking apps. As of 2021, CBSH's mobile banking app had approximately 100,000 users and was generating around $1 million in revenue.

• Product/Brand: CBSH Mobile Banking App
• Latest Financial Information (2021): Approximately 100,000 users and generating around $1 million in revenue

Another of CBSH's Question Marks is their commercial lending division, which has struggled to gain significant market share in a highly competitive market. Despite this, the commercial lending division has seen a steady increase in demand as more small businesses seek funding opportunities. As of 2022, the commercial lending division had issued approximately $50 million in loans.

• Product/Brand: CBSH Commercial Lending Division
• Latest Financial Information (2022): Issued approximately $50 million in loans

Overall, CBSH's Question Marks quadrant represents significant growth opportunities for the company. By identifying which products/brands have the potential to grow and investing in them accordingly, CBSH can turn their Question Marks into Stars and boost their overall profitability.

In conclusion, Commerce Bancshares, Inc. (CBSH) is a well-regarded bank holding company that has products and brands in all four quadrants of the Boston Consulting Group (BCG) Matrix Analysis. Their 'Stars' products/brands, such as commercial banking and personal banking services, are leaders in their respective markets and generate significant revenue for the company. Their 'Cash Cows' products/brands, such as personal loans, merchant services, and checking accounts, are the most profitable products for the company. On the other hand, their 'Dogs' products/brands, such as Commerce Brokerage Services, Commerce Trust Company, and Capital Markets, have low market share and growth rates but are still part of the company's portfolio.

Lastly, their 'Question Marks' quadrant products/brands, such as the mobile banking app and commercial lending division, have high growth potential but low market share. As a result, they require investments in support, promotion, and placement to become profitable and turn into 'Stars' in high-growth markets.

By analyzing CBSH's portfolio using the BCG Matrix Analysis, we can identify which products/brands require more investment and which ones can potentially be divested. Overall, CBSH's portfolio is well-structured, with a balanced mix of products and brands that generate significant cash flow and have the potential for growth. It is essential for CBSH to continue investing resources in their 'Stars' and 'Question Marks' quadrant products/brands to maintain their current level of productivity and potentially boost their future profitability.