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  • Writer's pictureZach Zoia

Changing the Conversation

Changing the Conversation in the current banking environment

ALM Strategy | ALCO

For fans of the critically acclaimed television show Mad Men, you may recall this famous quote from lead protagonist and advertising executive, Don Draper:

“If you don’t like what is being said, change the conversation.”

We all know that despite the challenges in our world with the pandemic, 2020 was a very strong year for earnings. 2021 has followed suit for many as well.

However, the discussions we are having with financial institutions throughout the industry point toward a less optimistic outlook for earnings in 2022 and 2023. The benefits from PPP fee income, historic mortgage banking activity, and other one-time income events are projected to fade, while net interest margin pressures continue to persist.

I think we can all agree these trends are certainly not what bankers like to see.