Investment banks need to make bold decisions to choose to invest in areas where they have a comparative advantage to win business or choose to exit them as the industry prepares for a big upheaval in the next year or two, a report said on Monday.
Analysts at Morgan Stanley said wholesale banks could bounce back to deliver returns on equity (RoE) of 12-14 percent in the next two years following structural changes.
That is seen as the level needed to match the cost of equity and deliver profitable returns for investors, but many analysts and investors think they may struggle for some time to get there.
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