McKinsey warns banks of ‘fleeting’ profit rebound as declining rates set to bite
==========

McKinsey & Co warns that higher profits for global banks over the last two years may be 'fleeting'; return on tangible equity (ROTE) rose to 11.7% in 2023, marking the best period for banking since before the global financial crisis; banks may need to cut costs at five times their usual rate to maintain profitability; US Federal Reserve cut benchmark rate by 0.5% in September 2024, first reduction in over four years; European Central Bank and Bank of England also lowering rates; net interest margins could drop by 16% by 2030; banks' share-price discount widened to 68% last year; McKinsey emphasizes the need for banks to adopt strategies of current leaders to avoid profitability decline.

#Banking #Profitability #InterestRates #Mckinsey #FinancialCrisis #Economy #UsFederalReserve #EuropeanCentralBank #BankOfEngland #MarketTrends

https://theedgemalaysia.com/node/730587 

 nostr:note1fxkegvnpc4uzuwuh4kasqzc3xn636e8hea9pvfctkqd3m2tnf7pq35p3g7