Fast Facts: Financial Executive Economic Outlook Report

The Financial Services Roundtable recently released another iteration of it’s Fast Facts, reliable, bullet-point research about issues facing the financial services industry. This series is the The Financial Services Roundtable’s first bi-annual Financial Executive Economic Outlook Report, which shows positive expectations for company profitability and capital reserves, despite an increase in compliance costs.

FACT: In a survey of Roundtable member leadership, ninety percent of financial services executives expect their companies’ profitability to increase (58%) or stay the same (32%) during the next six months.

  • 10% expect their companies’ profitability to decrease.

FACT: Roundtable executives are optimistic about employment: nearly three-quarters of executives expect employment to stay the same (36%) or increase (38%) during the next six months, while one-quarter (26%) expect employment at their firms to decrease.

FACT: Capital reserves are at historic highs, and are expected to continue rising.

  • Nearly all financial services executives expect capital reserves to increase (72%) or stay the same (25%) during the next six months.
  • Banks’ average Tier 1 capital ratio set a new record of 13.25% in the third quarter of 2012, according to FDIC data, and bank capital is at $1.6 trillion – the highest level in history.

FACT: Overwhelmingly, financial services executives expect compliance costs to increase during the next six months.

  • 84% of industry executives expect compliance costs to increase during the next six months; 15% expect compliance costs to stay the same; and only 1.6% expect compliance costs to decrease.

FACT:  Government regulation and fiscal uncertainty are the largest challenges hindering company growth.

  • Top policy issues are split between capital and liquidity rules (30%) and the Consumer Financial Protection Bureau (28%).
Copyright © 2013 The Financial Services Roundtable, All rights reserved.

Comments

  1. It’s hard to find knowledgeable people about this subject, but you sound like
    you know what you’re talking about! Thanks

  2. When I originally commented I seem to have clicked on the
    -Notify me when new comments aree added- checkbox and from now
    on every time a comment is added I rrceive 4 emazils with the
    same comment. Is there a way you can remove me from that service?
    Cheers!

  3. Geoff MCKAY says:

    I enjoy looking through a post that will make men and women think.
    Also, thanks for allowing for me to comment!

Speak Your Mind