U.S. Banking Quarterly Report: 3Q15 (Rate Environment Takes Its Toll)

...Net Income Generally Higher: Results for the largest 16 U.S. banks included in this report were generally higher on a linked-quarter basis, with 10 of the banks reporting higher net income sequentially. Despite the linked-quarter improvement, absolute earnings remain relatively lackluster, with a return on assets (ROA), on average, of slightly less than 100 bps. Results were impacted by increased market volatility, interest rate uncertainty, pressures in oil & gas, and a slowdown in mortgage activity. Offsetting these trends were generally lower expenses and still very benign credit costs. Despite higher earnings for a majority of these banks, return on equity (ROE) remained depressed, especially relative to pre-crisis levels. Capital Markets Revenues Mar Big Six Banks: Core results for the top six U.S. banks included below were heavily affected by much weaker capital markets results on both a sequential and year ago basis, with the exception of Wells Fargo & Company (WFC). Morgan Stanley...

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