Having spent prior years refocusing their business, banks have recently been 'investing for growth' once again. |
The results exhibited the first clear signs that the credit cycle has begun to turn. For the first time in many quarters, several banks reported higher loan loss provisions than we (or the market) had been expecting. |
We anticipate that these investments will continue in the the current year. For now the buoyant revenue environment should absorb the costs, but until they pay off, the spend represents a small drag on profitability. |