NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) released a research report today on Q3 2014 Large Bank Earnings. KBRA believes that the largest U.S. banks are likely to see level to down revenues for the second half of 2014 and beyond. Flat volumes overall and weak consumer demand for credit continue to be the dominant themes in the U.S. economy. With U.S. GDP growth in the 2-3% range this year and effective leverage ratios at roughly half of pre-crisis levels, low single digit credit growth for large U.S. banks should come as no surprise to investors.
In terms of earnings for the large banks, we expect to see continued volatility among the largest names as “extraordinary” charges and financial events reduce operating income. The good news is that most of the extraordinary charges related to legacy housing exposures may finally be recognized this year.
To view the report, please visit: https://www.krollbondratings.com/show_report/1587.
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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).