Declining Free Cash Flow GrowthA persistent decline in free cash flow growth can constrain internal funding for loan book expansion, make dividend coverage less secure, and increase reliance on external funding. Over months this reduces flexibility to invest or buffer credit shocks.
Slight Fall In Shareholders' EquityA shrinking equity base, even if modest, limits capacity to grow risk-weighted assets and may raise regulatory or market scrutiny for a lender. Continued declines reduce capital buffers, potentially increasing funding costs and constraining long-term growth options.
Compressed Operating MarginsEroding EBIT/EBITDA margins point to rising operating costs or lower efficiency. If this trend persists it will eat into the firm's margin cushion, reducing resilience to higher credit losses and limiting reinvestment capacity for technology, underwriting or distribution improvements.