Via Gottiboff today:
ATKearney has undertaken a detailed review of Australian banking prospects and says: “The golden age of banking is ending, profit growth ahead is going to be tough as easy profits are eroding.”
Two years ago, ATKearney caused great controversy when it first predicted that the banking boom was coming to an end. ATKearney forecast much lower big bank profit rises for 2016 and 2017 than was predicted by the analysts and the banks themselves. As it turned out, the bank profit growth was even lower than Kearney estimated and Kearney now predicts profit growth rates of just 2.6 per cent in the years ahead — and if there is a major economic convulsion, the profits will be a lot worse…ATKearney isolates five areas where the banks are going to face severe head winds — world technology and digital developments; politics and regulation, an economy in transition; the effect environmental change on clients and demographics as the big borrowing Baby Boomers retire.
