The Federal Reserve raised its benchmark Fed Funds rate by a quarter point, and signaled that the likely path for short-term rates continues to be two more one-quarter point increases in 2017.
Commercial LOBs saw double-digit earnings growth in 4Q16, with strong NIM improvement and a return to stable provision – but also slowing of loan growth.
Banking Industry Overview
Q4 2016 Results, Trends and Insights
The Federal Reserve raised its benchmark Fed Funds rate by a quarter point, and signaled that the likely path for short-term rates is three more one-quarter point increases in each of 2017 and 2018.
Strategies for Hyper-Effciency and Digital Transformation
In challenging industry circumstances, winning banks will define the next phase in their growth strategies and lay out individual paths to sustainable profitability.
Commercial LOB earnings recovered from last quarter’s one-time spike in loan loss provision
Banks need to clarify their deposit needs over the next few years and overhaul the metrics, skills and strategies used to drive deposit gathering.
Recent turbulence among digital online lenders does not change the overall direction of this growing market. Banks should stay focused on entry options and customer demand.
Progress in repositioning networks will be slowed if the most digitally-receptive customers are lost along the way, underscoring the need for channel segment strategy.