zeb/market flash (Issue 6 – July 2013)

zeb.market.flash provides an overview of the performance of the world’s largest banks (measured by market capitalisation). The relevant factors are briefly and concisely described, analysed and classified by our experts. For our analyses, we take a close look at relevant indicators for the valuation of the capital market, such as stock returns, as well as macroeconomic and bank-specific drivers. This issue (Q2 2013) deals with double sustainability as a strategic chance for banks. What’s in it for you?

State of the banking industry

  • In Q2 2013, US and Western European banks exhibited solid TSR performances fueled by promising P&L results in Q1 2013
  • Investors, however, became cautious about BRICS and especially Chinese banks, leading to lower valuations and higher CDS spreads

Key banking drivers

  • The recession in Western Europe continued with negative growth rates for the fourth quarter in a row
  • Sovereign interest rates remained low but increased in Q2 2013 as the US Federal Reserve considered adopting an expansive monetary policy

Special topic: Generating value in banks while acting as a responsible citizen

  • Double sustainability as a strategic chance for banks
  • Social/ecological sustainability tends to push TSR performance of banks but financial sustainability is a clear pre-condition

Picture: Skyline New York

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