The group’s new business plan confirms that the evolution of banks’ profitability will largely rely on that of their environment. Stripping out the hypothetical increase in interest rates, it shows that management will have to deploy a lot of effort to absorb the costs of regulation and digital transformation, with no guarantee of value creation if the cost of risk normalises faster than expected.
27 Nov 2018
Tough job
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Tough job
CaixaBank SA (CABK:WBO) | 0 0 1.0% | Mkt Cap: 24,117m
- Published:
27 Nov 2018 -
Author:
David Grinsztajn -
Pages:
2
The group’s new business plan confirms that the evolution of banks’ profitability will largely rely on that of their environment. Stripping out the hypothetical increase in interest rates, it shows that management will have to deploy a lot of effort to absorb the costs of regulation and digital transformation, with no guarantee of value creation if the cost of risk normalises faster than expected.