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Conduct cost for top banks declines for 1st time since 2011


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Conduct cost for top banks declines for 1st time since 2011

Thecost of conduct incurred by 20 top global banks between 2011 and 2015 was morethan £252 billion, including provisions, according to a report from theLondon-based Conduct Costs Project Research Foundation, which is affiliatedwith the London School of Economics.

Theamount represents an increase of about 27.6% compared with the 2008-2012period, the first measured by the project, for the same 20 banks. Costs werealso up on a rolling five-year basis, increasing around 4.1% compared to the2010-2014 time span.

However,conduct costs in 2015 totaled £28.03 billion, falling from £63.64 billion in2014 in the first year-over-year decline since 2011, the study found.

"Itremains to be seen whether this trend will be sustained into futureyears," the authors wrote in the paper published July 18. They noted thatprovisions set aside for conduct costs totaled £66.13 billion at year-end 2015,up from £60.15 billion a year earlier.

and toppedthe chart with £4.23 billion and £3.84 billion, respectively, in conduct costsfor 2015. Société GénéraleSA and StandardChartered Plc had respective costs of approximately £20 million and£50 million, the lowest among the 20-bank sample.

Theother lenders included in the survey are Bank of America Corp., JPMorgan Chase & Co., , , ,Deutsche Bank AG,HSBC Holdings Plc,BNP Paribas SA,Wells Fargo &Co., Goldman SachsGroup Inc., CreditSuisse Group AG, Banco Santander SA, UBS Group AG, National Australia Bank Ltd., and .