Key Topics
1. State of the banking industry
- Global banking industry with significant increase in market cap and solid TSR performance – global top 100 banks best performing industry in Q3 2014
- Stable CDS spreads – AQR and stress test uncertainties not yet reflected
2. Key banking drivers
- Strong GDP growth in the US accompanied with rise of inflation and interest rates and improving loan quality
- Interest and inflation rates further decreasing in Germany
- Shrinking global investment banking revenues – volumes down by more than 20%
3. Special topic: Bank separation and RRP—the end of universal banking?
- Structural separation and recovery & resolution initiated to end Too Big To Fail problem
- Structural reforms will significantly affect profitability of universal banks
Picture: Skyline Dubai
