Megabanks that offer multiple products to a broad variety of customers have sharply lower earnings growth than do more specialized competitors, according to a study of large banks by Booz-Allen & Hamilton Inc.

Comparing performance of the nation's 65 largest diversified banks with financial companies that specialize in a narrower band of products, the management consulting firm found that the bureaucracy and overhead of a traditional large bank-what Booz-Allen calls a multiline bank-drag down revenues and profits.

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