Key themes from Q2 2015 earnings calls
Positive trends that emerged in 1Q15 continue into 2Q15.
During the second quarter 2015 season, most of the banks included in this analysis reported year-over-year gains in earnings, revenues and return on equity (ROE), extending the positive trends that characterized the start of the year.
Banks across regions highlighted several areas of momentum:
- Organic capital generation
- Improvements in efficiency
- Growing evidence of renewed loan demand
- Continued strength in asset quality performance
Management at a number of banks believe that macro challenges are easing or, at least, becoming more manageable. Sergio Ermotti, Group CEO, UBS, said: “Today, UBS enjoys a unique period of strategic clarity, with a capital and execution track record to back it up. This gives me great confidence in our future.”
Headwinds remain in place, most notably around the resolution of legal and conduct issues, the cost of complying with regulations and potential new rules that could materially elevate endpoint capital requirements.
Despite this, most banks appear to believe that they are well positioned to achieve strategic targets or have the right business model in place to drive sustainable performance.
Top 10 themes: a quarter-over-quarter comparison