Profitability DeteriorationThe shift to negative net margins and losses in 2024 and TTM undermines internal capital generation and ROE. Persistent unprofitable operations constrain the bank's ability to reinvest, expand lending, or rebuild capital buffers without operational recovery or external capital, a material medium-term headwind.
Elevated Leverage And Negative ROEDespite improvement, leverage remains high and ROE negative, heightening vulnerability to loan losses or funding stress. Continued elevated leverage limits strategic optionality and increases the chance of capital actions; until profitability recovers, the balance sheet remains a structural risk.
Senior Management TurnoverThe departure of a long-tenured EVP/COO who also served as interim CEO/CFO removes institutional leadership during a recovery phase. Even described as orderly, such turnover can slow execution of strategic fixes, disrupt operations and lengthen the timeline to restore consistent profitability.