Page 3 - Banking Outlook 2014 - An Industry at a Pivot Point

Contents

The Banking industry Is at a Crossroads 2

Quarterly Income 2009–2013 2

U.S. Banks’ ROE (%) 2

Flat Revenue; Steep Decline in Loan-loss Provision 3

Net Interest Margin 1984–2013 (%) 4

Contribution of ALL Reversal to Net Income 5

FDIC-Insured Institutions 2004–2013 6

Connecting with Customers 9

Information Technology (IT) Transformation 11

Improve Data Analytics 15

Industrialize Internal Processes 17
The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. NDPPS 227982
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the U.S.A.
Leverage and Empower Internal Audit 19
Increase Use of the Cloud 21

Reexamine M&A Opportunities 23

Price to Tangible Book Multiples Over Time 24

Rebuild Reputation 27

Getting Going 29

About the author: Brian Stephens is the national leader of
KPMG’s Banking and Capital Markets practice,
which serves commercial banks, regional
and community banks, investment banks
and securities firms, and diversified financial
companies. He has 34 years of experience in
the banking industry serving large multinational
and national banks, as well as other global
bbstephens@kpmg.com
financial services institutions.