Key themes from Q3 2014 earnings calls
In Q3 2014, most of the banks in our analysis reported moderate revenue increases over Q2. Wealth management, retail banking and a rebound in FICC (fixed income, commodities and currencies) drove this more positive environment.
As American Express CEO Jeffrey Campbell observed, "We are beginning to see some modest acceleration in our volumes, but revenue is not yet growing as fast as we would like to see."
Other key trends for the quarter included the following:
- Compliance spending has escalated during 2014 and is expected to remain elevated.
- Capital rules continue to evolve, as national supervisors consider stricter capital and leverage requirements.
- Regulators are turning their focus to resolution and recovery for G-SIBs, specifically related to total loss-absorbing capital (TLAC).
- Conduct-related issues (and the associated legal costs and fines) remain a material drag on performance and reputation, particularly for bigger banks.
- The macroeconomic environment remains uneven. While North America appears to be growing, recovery in Europe varies by country. Emerging markets continue to grow at a slower pace.
(For more information about Q3 2014 earnings calls and the top 10 themes, download the full report.)