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Commercial Banking Performance — 1st Quarter 2017

Lackluster results with continued weak loan and deposit growth as well as a small decline in ROA

Overall 1Q17 Results: Commercial earnings rose by 1.4% versus prior quarter. ROA fell 1bp to 1.28% and NIM gained just a bp (to 2.51%), while banks failed to translate a 15bp increase in LIBOR to NIM. Versus the prior year, the gap between loan growth and deposit growth narrowed further (7.1% vs. 6.2%). A lower provision helped offset what would have otherwise been a decline in income. Loan growth has been disappointing and we’re not seeing results from the “Trump Effect” — there are a number of contributing factors, mostly on the demand side: Clients are waiting for tangible changes ...

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Commercial Banking Performance — 1st Quarter 2017

Lackluster results with continued weak loan and deposit growth as well as a small decline in ROA

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