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4 Major Themes for Banks in 2015

Morningstar's Dan Werner expects continued pressure on net interest margins, increased fee revenue, a focus on expense controls, and strong trading revenue for investment banks.

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Dan Werner: With most of the big banks reporting first-quarter earnings so far, we see four major themes for this sector that we believe will continue for much of 2015.

First, net interest margin will continue to be under pressure as average yields on earning assets continue to decrease from already low levels. With net interest income being the largest source of revenue for banks, absent significant loan growth, we think it will continue to decrease.

Dan Werner does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.