Despite new business mandates, macroeconomic factors weigh on earnings growth. STT announces the next phase in tech re-engineering to increase efficiencies and create the new generation of revenue driving products. Successful reduction in excess deposits should help leverage ratios, but negatively affect earnings in 4Q.
Regions showed a criticized loan energy spike this quarter but seems to be confident even though a sizeable amount is to oilfield services. Loan growth moderated and the margin declined with some growth in fee income. Began to implement a swaps strategy to help margin.
Credit Suisse’s new CEO Thiam linch-pins his franchise turnaround to the wealth management business with a right-sized investment bank. Combination of fixed cost reduction and major capital raise with rights issue will significantly boost capital levels. Still this vision is not unique among global banks in a highly competitive arena.
AUCA and AUM benefited from new wins in custody and asset management contracts, but was partially offset by lower equity market valuations and currency translation impact of a stronger U.S. dollar. Positive operating leverage from strong revenue growth and controlled expenses.
Slow loan growth and energy loan credit concerns and their ripple effects continue to aggravate Zions. Focused on charter consolidation to drive further efficiency gains.
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.