Global economic climate
- Debt crisis heats up again in Q2 2012, leading to an economic downturn globally and especially in Western Europe
- Greek haircut on debt in March 2012 was no sustainable solution – high Southern European refinancing needs may become decisive for the euro
Key banking drivers
- Banking industry negatively affected by growing market uncertainties – most key drivers and consensus forecasts show weak performance
- Latest scandals (e.g. Barclays and JP Morgan) aggravate negative sentiments
State of the banking industry
- Banking industry with TSR performance of -9% in Q2 2012 and -17% in last 12 months among weakest industry sectors
- Conditions for funding and capitalization remain challenging, esp. for Western European and US banks
