Thomson Reuters Inaugural Data-Driven TRust Index Shows Trust Rebounding in Global Financial Institutions
(Thomson Reuters ONE) -
New quarterly TRust Index leverages proprietary data, analytics, news and social
media sentiment
"Trust. Where does it come from and how is it measured? What is its value - and
how is that earned or lost?"
NEW YORK, May 7, 2013 - Thomson Reuters, the world's leading source of
intelligent information for businesses and professionals, today announced the
launch of a new proprietary index designed to measure trust in global financial
institutions. The Thomson Reuters TRust Index (TRust Index) is a comprehensive
fact-based and data-driven series of quarterly proprietary benchmarks built on
Thomson Reuters data, news, and analytics capabilities.
"Whilst much has been said on the topic of trust in the financial sector since
2008, rebuilding the global financial system requires a clear understanding of
the measures and values of key constituencies and the events impacting the
confidence with which the industry is regarded," said David Craig, president,
Financial & Risk, Thomson Reuters. "No one is better positioned to offer
objective, fact-based benchmarks. Through our own trusted data, news and
analytics, we have built the TRust Index to provide ongoing measures of trust to
enable insight and foster constructive dialogue."
Thomson Reuters TRust Index supports Thomson Reuters vision to connect and
enable the global financial community. Scott McCleskey, global head of
regulatory intelligence, Financial & Risk, Thomson Reuters, explains in this 2-
minute video how the TRust Index offers an array of measures that align to the
state of trust in the global financial marketplace today.
The TRust Index is based on data for the top 50 global financial institutions -
the largest banks, investment banks and investment managers based on market cap
- as a proxy for the sector as a whole for the period through the first-quarter
2013. It provides a number of metrics derived from Thomson Reuters proprietary
news and social media sentiment analysis, analyst expectations, credit spreads
and governance data. It will be published on a quarterly basis.
TRust Index key findings for the first-quarter 2013 include:
* Sentiment: Thomson Reuters news and social media sentiment analysis shows
that after several years of decline since 2008, the first quarter of 2013
shows a rebound in trust sentiment for the top 50 global financials with an
overall improvement in the economy, markets and bank profitability. Other
contributors to improved sentiment may include regulation, and regional
strengths, for example Asian institutions are strengthening due to interest
rate easing and liquidity infusion.
* Confidence of the marketplace: The analyst community's first-quarter
estimates for financials led all other sectors, which seemed to be validated
by strong first-quarter reporting for many financial institutions. The
confidence the analyst community has in the sector's prospects extends to
the 5-year outlook, and while there might be intermediate weaker quarters or
periods, the long-term view continues to outpace every other sector. In
addition, analysts assess the financials differently based on regional and
macroeconomic variables, with recent estimates higher for Asian institutions
than for their U.S. and European counterparts.
* Interestingly, this first TRust Index analysis reveals the market itself is
lagging the improved analyst view, discounting the sector relative to its
prospects. The investor view (market price) contains an implied view on
future earnings growth (or market-implied growth) and globally that implied
number is forecasting negative earnings growth. This means investors (the
market price) and analysts (the forecasts) views diverge at present.
* Counterparties: Thomson Reuters Datastream shows tightening credit spreads
over the past year, signaling greater confidence in financials as reliable
counterparties. They also reflect the external environment - our TRust
analysis shows spreads widest for European firms in the index, likely
reflecting relative evaluation of firms located in or highly exposed to the
euro.
* Controversy/Governance: Thomson Reuters ASSET4 data shows that in a period
of many controversies across the sector, the Top 50 Global Financials
experienced a high incidence of 'trust events'. And that the erosion of
trust, regulatory pressure and increased awareness of the costs -
reputational and monetary - appear to be driving increasingly
widespread adoption of policies intended to reduce controversy risk. We
believe that tracking this data in the quarters ahead will enable insight
into their effectiveness and metrics on progress.
"Overall, the inaugural TRust Index metrics reveal a number of encouraging
indications that trust and confidence in financial institutions are rebounding -
as evidenced in positive media sentiment, strong analyst assessment and first-
quarter performance in an improving market economy, and tighter credit spreads
as a measure of counterparty confidence," says Scott McCleskey. "But continued
wariness by investors in the sector, and potential future vulnerabilities in the
controversy and governance arena suggest that we are early in the chapter on
rebuilding trust in the global financial community.
"Thomson Reuters TRust Index provides a broader lens across institutional
constituents of the global financial marketplace to invite dialogue on where
trust comes from, how is it measured, what is its value, and how is that value
earned or lost?" added McCleskey. "Trust is a core topic today and we built the
TRust Index to provide a comprehensive and objective level of insight, and we
will continue to expand and extend the metrics and analyses. Whether you work in
the financial industry, analyze, invest in or write about it, are a customer of
the banks and investment firms that comprise it, or even a citizen of any of the
economies that depend upon its health and stability, this is relevant. Trust
affects us all."
Please click here for further details on the Thomson Reuters first-quarter 2013
TRust Index.
Thomson Reuters TRust Index Methodology and Sources:
Thomson Reuters ASSET4
Thomson Reuters Business Classification (TRBC)
Thomson Reuters Datastream
Thomson Reuters I/B/E/S
Thomson Reuters MarketPsych Indices
Thomson Reuters News Analytics (TRNA) for Internet News and Social Media
Thomson Reuters StarMine Quantitative Models
About Thomson Reuters
Thomson Reuters is the world's leading source of intelligent information for
businesses and professionals. We combine industry expertise with innovative
technology to deliver critical information to leading decision makers in the
financial and risk, legal, tax and accounting, intellectual property and science
and media markets, powered by the world's most trusted news organization. With
headquarters in New York and major operations in London and Eagan, Minnesota,
Thomson Reuters employs approximately 60,000 people and operates in over 100
countries. Thomson Reuters shares are listed on the Toronto and New York Stock
Exchanges. For more information, go to http://thomsonreuters.com.
CONTACT
Lemuel Brewster
PR Director, Investors
Thomson Reuters
+1 646-223-5147
Lemuel.brewster(at)thomsonreuters.com
Lauren Herman
Thomson Reuters
+1 646 223 5985
lauren.herman(at)thomsonreuters.com
Clare Arber
Head of PR for Financial Services Content
Thomson Reuters
+44 20 7542 6256
clare.arber(at)thomsonreuters.com
Keywords:
Thomson Reuters TRust Index
TRust Index
Thomson Reuters Trust Index
Trust Index
Trust in the Global Financial Marketplace
Trust of the Global Financial Marketplace
Trust and the Global Financial Marketplace
Trust and Financial Marketplace
Trust in the Financial Marketplace
Trust in the Financial Community
Trust and the Financial Community
Trust Benchmark
TRust Benchmark
Press release (PDF):
http://hugin.info/142273/R/1699764/560860.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Thomson Reuters Corporation via Thomson Reuters ONE
[HUG#1699764]
Unternehmensinformation / Kurzprofil:
Datum: 07.05.2013 - 15:00 Uhr
Sprache: Deutsch
News-ID 257070
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