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Kroll Bond Rating Agency Releases Q2 2014 Bank Earnings Preview

July 8, 2014



NEW YORK--(BUSINESS WIRE)-- Kroll Bond Rating Agency released a bank earnings preview for Q2 2014. First Quarter 2014 was a challenging period for the US economy and also for the US banking and housing sectors. There are some reasons for guarded optimism regarding the economy as the second half of 2014 begins, but we expect persistent banking challenges in areas such as mortgage finance, capital markets and net interest margins for the next several years.

KBRA expects to see key financial performance metrics such as operating revenue, net interest margin, asset returns and earnings trending down slightly for most US banks in Q2 2014 and beyond compared with a year ago as the lingering effects of zero interest rates and a lackluster economy take their toll on bank profitability.

KBRA believes that a lack of visibility as to the future direction of interest rates will be a recurring theme for banks and markets during the rest of 2014. Strong institutional demand for assets and, conversely, a dearth of consumer demand for credit will complicate the stated intention of the Federal Open Market Committee to normalize interest rate policy.

To view the report, please visit www.krollbondratings.com.

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).



Analytical:

Kroll Bond Rating Agency

Christopher Whalen, 646-731-2366

cwhalen@kbra.com

or

Marjan Riggi, 646-731-2354

mriggi@kbra.com

Source: Kroll Bond Rating Agency


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Source: Business Wire


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