2015 Outlook: Global Trading and Universal Banks

...Stable Rating Outlook: The rating outlook for the 12 Global Trading and Universal Banks (GTUBs) is stable. The Long-Term Issuer Default Ratings of four GTUBs are based on sovereign support, and the Outlooks on three of these banks (Bank of America Corporation, Deutsche Bank AG and Societe Generale) are Negative to reflect Fitch Ratings' view of declining state support. Stable Sector Outlook: The stable sector outlook for the GTUBs balances successful balance sheet strengthening and our expectation that an increase in risk appetite is unlikely given capital constraints, against further pressure on performance, particularly in capital markets activities, and significant exposure to conduct risk. Weak Performance: The GTUBs' performance remains under pressure, and we do not expect a material improvement in 2015. Revenue generation is unlikely to recover materially until interest rates increase and business volumes grow. We expect sizeable further fines and sanctions related to conduct risk,...

Outlook