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KEY TOPICS
1. State of the banking industry
- Global banking industry with a strong finish in 2014, as market valuation
increased by 9.6% in Q4—surprisingly, the banking industry thus
outperformed all other industry sectors in terms of TSR in both Q4 2014 and
the full year 2014 - CDS spreads remain stable in Western Europe and in the US, but uncertainties
about Russia increase BRICS CDS spreads, putting pressure on performance
2. Key banking drivers
- GDP growth unchanged in Q3 2014
- Inflation rates further decreased in all regions
- Interest rates decreased to a new historic low in Germany
- Loan quality further improving globally
3. Special topic: Bank separation and RRP—the end of universal banking?
- Reactions of capital markets to stress test results indicate disappointment
- Regulators focus on increasing transparency in the bank business
Picture: Skyline Sydney
