Perspectives
2025 banking and capital markets outlook
As the banking industry adapts to a low-growth, lower-rate environment, banks can reinforce their foundation for sustainable growth with ingenuity and discipline.
This report addresses five critical questions that bank executives should prioritize in 2025—a year that could be pivotal in many respects. But it’s important to recognize that other priorities, such as accelerating the transition to a green economy and revamping talent models for an AI-driven future, will also demand attention.
2025 could be a defining moment for establishing sustainable growth in the banking industry. The strategic actions taken now could be the catalysts that propel banks toward a brighter, more resilient future. By responding decisively, banks can ensure that the path to success is not just aspirational, but achievable.
Key messages:
- Macroeconomic and geopolitical uncertainties should keep bank executives on their toes.
- Higher deposit costs will keep net interest income in check.
- Noninterest income could offer a bright spot for topline growth.
- Higher compensation expenses and technology investments should keep expenses elevated.
- Credit quality is expected to normalize but could edge higher in 2025.