The ever-changing political, regulatory, consumer and economic climate is also discussed, in addition to insights into what can be expected over the coming period.
Highlights include:
- Retail banking: The conclusion of the PPI mis-selling legal case has imposed a redress bill in the region of GBP9 billion spread across the industry, and the likelihood is that the ICB will favour some form of ring-fencing for retail banking operations. Big structural changes and pressure on both sides of the profit equation will continue to challenge management for some time to come.
- Investment banking: The Eurozone sovereign debt crisis and depressed trading volumes mean that first half results were disappointing. Concerns over future capital requirements in light of the ICB's apparent direction of travel, only add to an uncertain outlook. Sweeping cost-cutting programmes are in plan or in place already.
- Regulation: The risk of unintended consequences and the need for a holistic view and coordinated approach are dominating the regulatory agenda. The briefest of 'lulls' over the summer will give way to a raft of further change in the autumn.