zeb.market.flash (Issue 12 – January 2015)

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

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