Weak Operating Cash Flow & Negative FCFDeclining operating cash flow and negative free cash flow indicate the bank struggles to convert accounting profits into cash. Over months this can constrain liquidity, limit capacity for dividends, buybacks or loan growth, and raise reliance on external funding.
Relatively High Leverage RemainsEven after improvement, a high leverage ratio combined with modest ROE raises vulnerability to interest rate and credit shocks. Sustained high leverage can pressure capital ratios, reduce strategic flexibility, and may necessitate asset reductions or capital measures over time.
Operational Efficiency PressureA falling EBIT margin signals rising costs or lower operating leverage despite revenue growth. If operational efficiency isn't addressed, margin erosion can limit profitability conversion, weaken ROE and cash generation, and reduce competitiveness vs more efficient peers.