Upcoming new CEO will focus on driving efficiencies as the loan and revenues challenge continues at Fifth Third. Some lift in commercial construction and other C&I, but consumer is less of a factor.
Core fee business revenues and net interest income increase from organic growth and balance sheet restructuring. Process simplification and improvement helped to lower expenses by 10%.
Deliberate consumer loan and deposit shuffling helped to increase sequential NIM. Expense control and lower credit costs allowed for higher earnings before tax. Profitability measurements finally on par with regional peers after tax benefit assist.
Strong fee revenues from investment banking and corporate services and solid C&I loan growth are main drivers. Despite positive operating leverage KEY’s efficiency ratio remains much above regional peers.
Comerica continues to be dogged by rising criticized energy loans, but is convinced that losses will be manageable. Looks at positive growth in California and Michigan and some parts of Texas as diversification play.
Morgan Stanley has worst performance in fixed income of major players with little relief in other business lines. Advisory strong with some stability from wealth management. Fixed income risk needs to be contained more.
New Co-CEO Cryan presented Strategy 2020 aimed at rebooting DB into a better capitalized and risk-adjusted return bank. Large focus on reducing adjusted costs to rebuild profit and capital metrics without share issuance. Lots of moving parts and related exe cution risk, but working to satisfy key stakeholders across the credit, regulatory and risk management spectrum. Common dividend suspended, so more equity payout hoped for in 2017. DB Deutsche Bank
PNC is battling the margin pressure blues similar to other regional banks. Modest loan growth offset by deliberate run-off of non LCR and capital friendly assets amidst liquidity build.
Recent market downdrafts hounded Goldman Sachs’ FICC and Investment & Lending business more than the peers. Still GS believes that its FICC business is well configured for secular consolidation of balance sheet liquidity providers and it has the business diversification, balance sheet and capital to absorb volatility.
Citi is still mostly a cost cutting and stronger capital story. The operating metric progression is still to be seen and the global markets downdraft has cooled off its capital markets and Asia consumer momentum.