Financial Institutions 2016 Outlooks Compendium

...Stable Rating Outlook: The Rating Outlook for the Global Trading and Universal Banks (GTUBs) sector is Stable. The Long-Term IDRs of all GTUBs are based on their Viability Ratings (VRs) and reflect Fitch Ratings' view that the groups' strong franchises should place them in a good position to generate adequate risk-adjusted returns. The Outlook on the Long- Term IDR of one GTUB parent company (UBS Group AG) is Positive. Stable Sector Outlook: The Stable Outlook for the GTUB sector reflects our view that balance sheets remain strong and prospects for retail and corporate banking in the groups' home markets are fair given the operating environment. This mitigates expected further pressure on earnings from capital markets activities, particularly in fixed-income products, as client-driven trading volumes have not yet seen a sustainable pick-up. Moderate loan impairment charges, which we expect to increase only modestly from low 2015 levels, should underpin earnings. Business Models are Adapted:...

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