Voya Perspectives | Market Series | April 10, 2014
Market Insight
Western European Banks from
a Credit Perspective
Spencer Phua, CFA
Senior Credit Analyst
With Western European economic conditions more
stable now than at any other time over the last two
years — Russia/Ukraine-related geopolitical issues
notwithstanding — we think it would be timely to
provide an update on the major banks within the
region from the standpoint of a credit investor. In this
short study, we present data and our credit views on
the largest U.K., French, German and Swiss banks,
concluding that various parts of their debt capital
structures may represent differing value propositions,
subject to specific investment mandates and
risk appetites.
United Kingdom
Wes Mannan, CFA
Senior Credit Analyst
The most frequently traded U.K. banks in our debt
markets are HSBC, Barclays, Lloyds and Royal Bank
of Scotland. Figure 1 depicts them in order of total
assets; additional breakdowns of these banks’
revenue and earnings can be found in the Appendix
beginning on page 9.
Figure 1. U.K. Banks by Total Assets
$3,000
$ Billions
$2,500
$2,000
$1,500
$1,000
$500
$0
HSBC
Barclays
RBS
Lloyds
Source: SNL Financial, company filings
HSBC is the largest and most diverse of the U.K. banks,
with operations spread across most global regions.
Despite some legal and regulatory charges during 2013,
it generated a substantial $23 billion in pretax earnings
on revenue of approximately $66 billion.
Barclays has a substantial investment bank in addition
to retail and commercial banking. While not as globally
diverse as HSBC, it is more geographically diverse than
Lloyds or RBS. For 2013, Barclays earned $4.5 billion
in pretax earnings, substantially less than HSBC, on
revenue near $44 billion.
Lloyds is a largely U.K.-focused retail/commercial bank
that recently has made strides in improving its financial
performance as well as in gaining some measure of
independence from the U.K. government. U.K. Financial
Investments, which manages the government’s
holdings in bailed-out banks, sold a 6% ownership
stake of Lloyds in September 2013, leaving it a 33%
owner; more government stake sales are anticipated.
Due to legal and regulatory charges and restructuring
costs, 2013 pretax earnings for Lloyds was only £415
million ($649 million) despite decent core operating
performance. Revenue came in at $29 billion.
Royal Bank of Scotland has divested various
international operations recently and is about to IPO
its U.S. regional bank (RBS Citizens). It has some
international operations that will get smaller with time,
leaving its main focus on the U.K. and British Isles. RBS
remains majority owned by the U.K. government as
part of its crisis-era bailout and will not likely see its
government holding sold or reduced until Lloyds has
been divested fully.
RBS suffered a large loss of nearly $13 billion in 2013
on revenue of $30 billion; this was due not only
to a number of regulatory charges but also to the
accelerated disposal of noncore assets. If successful,
this plan should lay the groundwork for a better balance
sheet in future.
I N V E S T M E N T M A N AG E M E N T
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VoyaTM Investment Management was formerly ING U.S. Investment Management
Voya Perspectives | Market Series | April 10, 2014
France
BPCE is the smallest of the French banks discussed here, with
a majority of its revenue stream tied to commercial banking and
insurance. BPCE has only modest international exposure, and it has
the greatest concentration within its home market relative to other
French banks. BPCE generated $6.5 billion in pretax earnings for 2013
on revenue of $31 billion, making it a higher-earning bank than Credit
Agricole and SocGen.
The most frequently traded French banks in our debt markets are
BNP Paribas, Societe Generale, Credit Agricole and BPCE (Banque
Populaire/Caisse d’Epargne). Figure 2 depicts them in order of total
assets; additional breakdowns of these banks’ revenue and earnings
can be found in the Appendix.
Figure 2. French Banks by Total Assets
Switzerland
As you can see in Figure 3 below, the two major Swiss banks — Credit
Suisse and UBS — share a common focus on global wealth management
and private banking. While assets under management have grown strongly,
such a business concentration has operational risks, as both banks
have paid penalties for assisting tax evasion. Credit Suisse faces an
ongoing U.S. investigation of this matter.
Figure 3. Swiss Banks Are Focused on Wealth Management
and Private Banking
2,000
Source: SNL Financial, company filings
UBS Invested Assets 2013
1,500
$ Billions
BNP Paribas is the largest of the French banks, with a geographically
diversified revenue stream and operations spread across most global
regions. Despite some legal and restructuring charges during the
year, BNP made a solid $11 billion in 2013 pretax income on revenue of
$52 billion.
Wealth
Management
Americas
1,000
Societe Generale has a substantial domestic and international retail
bank. While not as large as BNP in terms of total assets, SocGen is
less concentrated in France and more pan-European in its revenue
stream; outside of Europe, however, its international diversification is
lower than BNP Paribas. SocGen earned $4.06 billion pretax in 2013,
less than BNP and BPCE but ahead of Credit Agricole. Its revenue
came in at $31 billion.
0
1,500
Wealth
Management
Emerging
Markets
Wealth
Management
Asia Pacific
500
Invested
Assets
Wealth
Management
Europe
Wealth
Management
Switzerland
Global Asset
Management
Credit Suisse Assets Under Management 2013
1,200
$ Billions
Credit Agricole has very healthy revenue diversification across
its business lines relative to other French banks. However, its
geographic diversification is low, with the vast majority of revenue
coming from domestic and other EU sources. Its small investment
banking operation mitigates its risk profile. Though the $3.9 billion
pretax Credit Agricole earned in 2013 lagged BNP and SocGen, it
represented a significant improvement from the $2.8 billion loss
reported in 2012. It reported revenue of $23 billion last year.
900
600
300
0
Wealth
Management
Switzerland
Assets Under
Management
Source: Company filings
2
Wealth
Management
Americas
Wealth
Management
EMEA
Corp &
Institutional
Wealth
Management
Asia Pacific
Non
Strategic
CS Asset
Management
Voya Perspectives | Market Series | April 10, 2014
Figure 4. Core Western European Banks — Earnings and
Capitalization Trends
UBS has de-risked its balance sheet and business mix in recent years,
with a reduced emphasis on volatile investment banking and trading;
wealth management will form the mainstay of a more focused UBS in
future. The company generated pretax income of $3.5 billion in 2013,
as it was forced to allocate about $4 billion to legal regulatory charges
and other one-off negative items as its business mix was being rightsized. Revenue came in at $30 billion.
Return on Assets
ROAA 2012Y (%)
0.8%
ROAA 2013Y (%)
0.6
0.4
0.2
Credit Suisse is currently undergoing a restructuring exercise to
downsize some aspects of its fixed income business. Its investment
bank is seen as just outside the top tier globally but still fairly
competitive. Credit Suisse posted $5.4 billion in pretax earnings
in 2013 on revenue of $26 billion, reflecting steady performance
in private banking but somewhat more inconsistent results in its
investment bank.
0.0
-0.2
-0.4
HSBC
BNP
Paribas
Deutsche
Bank
Barclays
Societe
General
Credit
Agricole
SA
-0.6
Lloyds UBS
Groupe Banking
BPCE Group
Credit
Suisse
Royal Bank
of Scotland
Group
-0.8
Germany
Basel III Common Equity Tier 1 Ratio
Deutsche Bank is Germany’s largest bank and its only one with
strong global diversification. The corporate banking and securities
segment (i.e., investment banking) is the largest source of revenue,
which came in at $42 billion in for 2013. Pretax income in 2013 was
only $2.75 billion, low for DB’s size relative to historical performance,
reflecting litigation, restructuring costs and a number of other
adjustments.
10
8
6
4
In terms of earnings, HSBC, Credit Suisse, BNP and BPCE are among
the more consistent earners over the last two years, as shown in
Figure 4. While SocGen, Barclays and Deutsche Bank also posted
positive returns over the last two years, they remain well below
the top performing group in terms of return on assets. UBS and
Credit Agricole reported losses in 2012 but have since returned to
profitability in 2013. Lloyds and RBS both reported two consecutive
years of negative returns.
2
0
Credit Ranking
Given the various fundamental indicators we have discussed as well as
our observation of asset quality performance over the years (omitted
for reasons of brevity), we rank these banks as follows based on our
view of their likely credit strength going forward.
7. BNP
8. Barclays
3. UBS
9. Lloyds
4. Credit Suisse
10. Deutsche Bank
5. Credit Agricole
11. Royal Bank of Scotland
Deutsche UBS
Bank
Credit HSBC
Suisse
RBC Lloyds Barclays Credit SOCGEN BNP
Source: SNL Financial, company filings
Meanwhile, the best capitalized group — at better than 11% Basel
III Common Equity Tier 1 capitalization — includes UBS and Credit
Agricole. Between 10–11% lie Credit Suisse, HSBC, Lloyds, SocGen,
BNP and BPCE while the sub-10% category includes Deutsche,
Barclays and RBS in descending order.
2. BPCE
2013
12
Profitability and Capital
1. HSBC
2012
14
6. SocGen
3
Agricole
BPCE
Voya Perspectives | Market Series | April 10, 2014
Relative Value Commentary: Senior Credit-Default Swaps
and BNP offers little relative value. HSBC provides some incremental
value compared with the tightest-trading names, though spreads
reflect some taint from the bank’s emerging markets operations; we
still consider HSBC a strong global bank, and expect its emerging
market exposure to be well managed. The spread on Lloyds’ CDS is
only 5 basis points wider than HSBC, while we have the former ranked
eight notches below the latter in terms of credit strength; as such, we
see little relative value in Lloyds senior CDS.
In this section we use five-year credit default swaps to assess the
relative value in the senior part of the capital structure for the core
Western European banks.
As you can see in Figure 5, five-year CDS issued by UBS, Credit Suisse
and BNP are the three tightest trading instruments. Given that these
issuers are not in the top two of our credit rankings (and BNP comes in
only seventh), we believe the senior-level CDS of UBS, Credit Suisse
Figure 5. Core Western European Banks — Tighter CDS Spreads
Source: Barclays Live
4
Voya Perspectives | Market Series | April 10, 2014
Figure 6 looks at the issuers at the wider end of the spread spectrum.
Deutsche and Credit Agricole swaps are trading at similar spread
levels, but Credit Agricole represents better value given our higher
credit ranking. Similarly, with a 3 basis point gap between SocGen
and Barclays CDS spreads, there is better value in SocGen given our
favorable credit ranking. RBS is not only trading at the widest levels
of the banks in our analysis — 13 basis points behind SocGen and 28
basis points behind Deutsche Bank — it is also the weakest in terms
of our current credit assessment. While our ranking of credit strength
is in line with RBS’s cheap trading level, we would argue that the bank
has room to tighten — to perhaps 10 basis points wider than Deutsche
eventually — assuming its efforts to repair its balance sheet succeed.
Thus, RBS is a credit story whose relative value is yet to be realized.
Figure 6. Core Western European Banks — Wider CDS Spreads
Source: Barclays Live
5
Voya Perspectives | Market Series | April 10, 2014
Relative Value Commentary: Cash Instruments
For HSBC and BPCE — our top two credit picks — we compare
their more recently issued five-year notes: HSBC 2.625% notes due
September 2018 versus BPCE 2.5% notes due December 2018
(shown in Figure 7). Despite HSBC being the better credit in our view,
the roughly 30 basis point spread between their 2018 bonds favors
BPCE in relative-value terms.
Figure 7. HSBC and BPCE — 2018 Senior Debt
Source: Barclays Live
Looking at the two Swiss banks in Figure 8, we note that UBS senior
debt trades about 2 basis points wide of a similar Credit Suisse issue
(UBS 4.875% 2020 OAS 93 versus Credit Suisse 4.375% 2020 OAS
91). With its higher capitalization, we consider UBS to offer slightly
better relative value. In subordinated contingent convertible securities
(CoCos)1, UBS 4.75% 2023 (callable 2018) CoCos offer a yield to worst
of 4.2% at $102, which compares less favorably to Credit Suisse 6.5%
2023 CoCos with a yield to worst of 5.1% at $110. Both of these CoCos
have low-trigger 5% and below trigger structures. We conclude that in
subordinated securities, UBS’s higher capitalization and the specific
shorter callable structure of this UBS subordinate bond explain its
lower yield to worst versus Credit Suisse.
1
“CoCos” are junior subordinated bonds that can be written down or converted
into equity should capital ratios hit a predetermined trigger or should the bank be
deemed non-viable. The conversion or write down should help recapitalize the bank.
CoCos form an increasingly important part of European banks’ capital structures.
6
Voya Perspectives | Market Series | April 10, 2014
Figure 8. UBS and Credit Suisse — 2020 Senior Debt
Source: Barclays Live
Among the three French banks in the middle of our credit ranking,
BNP trades the tightest in the five-year senior space, with both
SocGen and Credit Agricole about 3 basis points wider. Since we rank
BNP behind the other two in terms of credit strength, BNP provides
lower relative value.
Figure 9. BNP, SocGen and Credit Agricole — 2018 Senior Debt
Source: Barclays Live
7
Voya Perspectives | Market Series | April 10, 2014
Subordinated debt trading levels among the weaker names in our
credit ranking validates our analysis. Deutsche Bank 4.296% 2028
(subs callable 2023) trades at an OAS 266 basis points, measurably
wider than similar issues from higher-ranked Lloyds and Barclays,
though some of this reflects the call structure of this particular bond
(noncallable for ten years). RBS 6.125% 2022 (subordinated) trade at
an OAS of 302 bps, the widest of the instruments we are comparing
here, which corresponds with last place in our credit ranking.
However, Barclays 5.14% 2020 (subordinated) at an OAS of 191 bps
trades 6 bps wide to Lloyds 6.5% 2020 (subordinated) OAS 185;
Barclays subordinated bonds provide incrementally better value than
Lloyds given our assessment of relative credit strength.
Figure 10. Barclays, Lloyds, Deutsche Bank and RBS — Subordinated Debt
Source: Barclays Live
Conclusion
These major European banks are important financial institutions in
both a European and a global context. Credit investors looking to
participate in the ongoing economic recovery in Western Europe can
maximize return subject to their risk preferences by selecting bond
investments that most directly suit their mandates.
8
Voya Perspectives | Market Series | April 10, 2014
Appendix
Figure 11. 2013 Revenue and Earnings — HSBC
Business Line Revenue Mix 2013 ($ millions)
$5,651
Retail Banking and
Wealth Management
$2,439
$26,740
Commercial Banking
Global Banking & Markets
$19,176
Global Private Banking
Other
$16,365
Geographic Revenue Mix 2013 ($ millions)
Europe
$10,568
$20,967
$8,803
$2,503
$13,203
$11,978
Hong Kong
Rest of Asia-Pacific
Middle East and North
Africa
North America
Latin America
Pretax Income Mix 2013 ($ millions)
Other
Global Private Banking
Commercial Banking
and Markets
Commercial Banking
Retail Banking and
Wealth Management
Net Income before Taxes
-5,000
0
5,000
10,000
15,000
20,000
25,000
Source: SNL Financial, company filings
9
Voya Perspectives | Market Series | April 10, 2014
Figure 12. 2013 Revenue and Earnings — Barclays
Business Line Revenue Mix 2013 ($ millions)
$(538)
$2,877
Retail and
Business Banking
Corporate and Investment
Banking
Wealth and Investment
Management
Head Office Functions and
Other Operations
$19,701
$21,666
Geographic Revenue Mix 2012 ($ millions)
$1,753
$11,781
$7,148
$12,403
$6,048
UK
Europe
Americas
Africa and
the Middle East
Asia
Pretax Income Mix 2013 ($ millions)
Head Office Functions
and Other Operations
Wealth and Investment Management
Corporate and Investment Banking
Retail and Business Banking
Net Income before Taxes
-1,000
0
1,000
2,000
3,000
Source: SNL Financial, company filings
10
4,000
5,000
Voya Perspectives | Market Series | April 10, 2014
Figure 13. 2013 Revenue and Earnings — Lloyds
Business Line Revenue Mix 2013 ($ millions)
$2,780
$421
Retail
Commercial Banking
$4,191
$13,997
Wealth, Asset Finance and
International
Insurance
Other
$8,032
Pretax Income Mix 2013 ($ millions)
Other
Insurance
Wealth, Asset Finance
and International
Commercial Banking
Retail
Net Income before Taxes
-1,000
0
1,000
2,000
3,000
4,000
5,000
Source: SNL Financial, company filings
11
6,000
Voya Perspectives | Market Series | April 10, 2014
Figure 14. 2013 Revenue and Earnings — RBS
$408
Business Line Revenue Mix 2013 ($ millions)
$(541)
$5,197
$7,724
$4,676
$6,989
$1,363
$2,891
$1,710
UK Retail
UK Corporate
Wealth
International Banking
Ulster Bank
US Retail & Commercial
Markets
Central items
Non-Core
Pretax Income Mix 2013 ($ millions)
RFS Holdings minority interest
Reconciling items
Non-core
Central Items
Markets
U.S. Retail & Commercial
Ulster Bank
International Banking
Wealth
UK Corporate
UK Retail
Net Income before Taxes
-14,000 -12,000 -10,000 -8,000 -6,000 -4,000 -2,000
0
2,000
Source: SNL Financial, company filings
12
4,000
Voya Perspectives | Market Series | April 10, 2014
Figure 15. 2013 Revenue and Earnings — BNP Paribas
Business Line Revenue
Revenue Mix
Mix2013
2013($($
millions)
millions)
$(541)
$408
$(339)
UK Retail
$5,197
$11,504
UK
Corporate
Retail
Banking
$7,724
Wealth
Investment Solutions
International
Banking
Ulster Bank
$4,676
Corporate and Investment
US
Retail & Commercial
Banking
$8,425
$31,968
$6,989
Markets
$1,363
Other Activities
Central items
$2,891
Non-Core
$1,710
Geographic Revenue Mix 2013 ($ million)
Geographic Revenue Mix 2013 ($ millions)
$3,246
$3,513
$5,116
$39,683
Domestic Markets
Other European Countries
Americas
Asia and Pacific
Pretax Income Mix 2013 ($ millions)
Other Activities
Corporate and Investment Banking
Investment Solutions
Retail Banking
Net Income before Taxes
-4,000
-2,000
0
2,000
4,000
6,000
8,000
Source: SNL Financial, company filings
13
10,000 12,000
Voya Perspectives | Market Series | April 10, 2014
Figure 16. 2013 Revenue and Earnings — Societe Generale
Business Line Revenue
Revenue Mix
Mix2013
2013($($
millions)
millions)
$(541)
$408
$(339)
UK Retail
$5,197
$11,504
UK
Corporate
Retail
Banking
$7,724
Wealth
Investment Solutions
International
Banking
Ulster Bank
$4,676
Corporate and Investment
US
Retail & Commercial
Banking
$8,425
$31,968
$6,989
Markets
$1,363
Other Activities
Central items
$2,891
Non-Core
$1,710
Geographic Revenue Mix 2013 ($ millions)
$1,490 $179
$1,636
$1,660
$13,834
$11,521
France
Europe
Americas
Asia
Africa
Oceania
Pretax Income Mix 2013 ($ millions)
Corporate Center
Global Banking and
Investor Solutions
International Retail Banking &
Financial Services
French Retail Banking
Net Income before Taxes
-3,000
-2,000
-1,000
0
1,000
2,000
3,000
Source: SNL Financial, company filings
14
4,000
5,000
Voya Perspectives | Market Series | April 10, 2014
Figure 17. 2013 Revenue and Earnings — Credit Agricole
Business Line Revenue Mix 2013 ($ millions)
$(2,889)
French Retail Banking
$5,061
International Retail Banking
$4,774
$3,235
Savings Management
Specialised Financial Services
Corporate and Investment
Banking
$4,274
Corporate Centre
$6,813
Geographic Revenue Mix 2013 ($ millions)
$1,054
$919
$6,938
$52
$244
$555
$649
France (including overseas
departments and territories)
Other European Union countries
$10,857
Other European countries
North America
Central and South America
Africa and Middle East
Asia-Pacific (ex. Japan)
Japan
Pretax Income Mix 2013 ($ millions)
Corporate Center
Corporate and Investment Banking
Specialized Financial Services
Savings Management
International Retail Banking
French Retail Banking
Net Income before Taxes
-4,000
-3,000
-2,000
-1,000
0
1,000
2,000
Source: SNL Financial, company filings
15
3,000
4,000
Voya Perspectives | Market Series | April 10, 2014
Figure 18. 2013 Revenue and Earnings — BPCE
Business Line Revenue Mix 2013 ($ millions)
$(801)
$2,195
Commercial Banking &
Insurance
Wholesale Banking,
Investment Solutions & SFS
$8,497
$20,423
Equity Interests
Activities managed on a runoff basis and other businesses
Geographic Revenue Mix 2013 ($ millions)
$1,054
$2,428
$1,398
France
Other European countries
North America
Rest of World
$25,434
Pretax Income Mix 2013 ($ millions)
Activities managed on a run-off
basis and other businesses
Equity Interests
Wholesale Banking Investment
Solutions & SFS
Commercial Banking & Insurance
Net Income before Taxes
-2,000 -1,000
0
1,000
2,000
3,000
4,000
5,000
Source: SNL Financial, company filings
16
6,000
7,000
Voya Perspectives | Market Series | April 10, 2014
Figure 19. 2013 Revenue and Earnings — Deutsche Bank
Business Line Revenue
Revenue Mix
Mix2013
2013($($
millions)
millions)
$(801)
$1,177
$2,195
$12,683
$18,092
$8,497
$20,423
Corporate Banking
Commercial
Banking&&
Insurance
Securities
Global Transaction Banking
Wholesale Banking,
Deutsche Asset
and &Wealth
Investment
Solutions
SFS
Management
Equity
PrivateInterests
& Business Clients
Activities
on aUnit
runNon-Coremanaged
Operations
off basis and other businesses
$6,288
$5,404
Business Line
Geographic
Revenue
Revenue
MixMix
20132013
($ millions)
($ millions)
$1,177
$4,766
$16,035
$18,092
$12,683
$11,035
$6,288
Corporate Banking &
Securities
Germany
Global Transaction Banking
Europe, Middle East and
Deutsche
Africa Asset and Wealth
Management
Americas (primarily
Private
Business Clients
United &States)
Asia/Pacific
Non-Core
Operations Unit
$12,798
$5,404
Pretax Income Mix 2013 ($ millions)
Non-Core Operations Unit
Private & Business Clients
Deutsche Asset and
Wealth Management
Global Transaction Banking
Corporate Banking & Securities
Net Income before Taxes
-5,000 -4,000 -3,000 -2,000 -1,000 0 1,000 2,000 3,000 4,000 5,000
Source: SNL Financial, company filings
17
Voya Perspectives | Market Series | April 10, 2014
Figure 20. 2013 Revenue and Earnings — UBS
Geographic
Revenue
Mix 2012
($ millions)
Business
Line
Revenue
2013
($ millions)
Business
Line
Revenue
MixMix
2013
($ millions)
$1,177
$2,088
$1,748
$3,300
$4,073
$12,683
$8,173
$10,313
$18,092
$9,280
$11,778
$6,288
$7,085
Corporate
Banking &
Wealth Management
Americas
Securities
WealthTransaction
Management
Global
Banking
Switzerland
Americas
Deutsche Asset and Wealth
Investment
Asia PacificBank
Management
Private & Business Clients
Retail
& Corporate
Europe,
Middle East and
Non-Core
Africa Operations Unit
Global Asset Management
$5,404
Business
Line
Revenue
($ millions)
Business
Line
Revenue
MixMix
20132013
($ millions)
$1,177
$2,088
$4,073
$12,683
$8,173
$18,092
$9,280
$6,288
Corporate
Banking &
Wealth Management
Securities
WealthTransaction
Management
Global
Banking
Americas
Deutsche Asset and Wealth
Investment Bank
Management
Private & Business Clients
Retail & Corporate
Non-Core Operations Unit
Global Asset Management
$7,085
$5,404
Pretax Income Mix 2013 ($ millions)
Corporate Center
Global Asset Management
Retail & Corporate
Investment Bank
Wealth Managment Americas
Wealth Managment
Net Income before Taxes
-5,000 -4,000 -3,000 -2,000 -1,000
0
1,000
2,000
Source: SNL Financial, company filings
18
3,000
4,000
Voya Perspectives | Market Series | April 10, 2014
Figure 21. 2013 Revenue and Earnings — Credit Suisse
Business Line Revenue
Revenue Mix
Mix2013
2013($($
millions)
millions)
$1,177
$690
$12,683
$18,092
$14,517
$13,622
Corporate Banking &
Securities
Private Banking & Wealth
Management
Global
Transaction Banking
Investment
Banking
Deutsche
Asset
and Wealth
Management
Noncontrolling interests
Private
Business Clients
without& SEI
Non-Core Operations Unit
$6,288
$5,404
Geographic Revenue Mix 2013 ($ millions)
$3,277
$7,796
Switzerland
EMEA
Americas
Asia Pacific
$10,387
$6,679
Pretax Income Mix 2013 ($ millions)
Noncontroling interests without SEI
Corporate Center
Investment Banking
Private Banking & Wealth Managment
Net Income before Taxes
-2,000
-1,000
0
1,000
2,000
3,000
4,000
Source: SNL Financial, company filings
19
5,000
6,000
Voya Perspectives | Market Series | April 10, 2014
This commentary has been prepared by Voya Investment Management for informational purposes. Nothing contained herein should be construed as (i) an offer to sell or
solicitation of an offer to buy any security or (ii) a recommendation as to the advisability of investing in, purchasing or selling any security. Any opinions expressed herein
reflect our judgment and are subject to change. Certain of the statements contained herein are statements of future expectations and other forward-looking statements that
are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events
to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to,
without limitation, (1) general economic conditions, (2) performance of financial markets, (3) interest rate levels, (4) increasing levels of loan defaults, (5) changes in laws and
regulations and (6) changes in the policies of governments and/or regulatory authorities.
The opinions, views and information expressed in this commentary regarding holdings are subject to change without notice. The information provided regarding holdings is
not a recommendation to buy or sell any security. Fund holdings are fluid and are subject to daily change based on market conditions and other factors.
Past performance does not guarantee future results.
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