Banks are facing increased pressure to drive shareholder value. Despite compressed margins and low loan growth, the industry has made substantial progress in improving its financial performance by limiting expenses and growing noninterest income.Through the second quarter of 2013, earnings had posted year-over-year growth for 16 consecutive quarters and reached a record nominal high of $42.2 billion. However, ROE for banks larger than $10 billion, at 10.6 percent in the second quarter, was still below the 1993-2006 average of 14.4 percent (see Figure 3).17
To help support additional business demands, the role of the chief financial officer (CFO) has evolved to be more strategic in nature, especially involving efficient capital deployment and cost management. As part of this change, finance functions have begun building integrated reporting capabilities and analytical skills. Despite some progress, firms have yet to fully develop and utilize these tools.