As Quarterly Earnings Decline for Many Banks, A Solid Communications Strategy Has Never Been More Important

In the dynamic and cyclical world of banking, the need for a well-structured communication strategy cannot be overstated. One critical time when such a strategy is indispensable is when a bank’s quarterly earnings are declining.

Our latest blog delves into the reasons why it is crucial for banks to have a communication strategy in place during these challenging times and explores what a typical strategy should include.

Why a Communication Strategy Matters

Maintaining Stakeholder Trust: A bank’s primary asset is trust. When quarterly earnings are on the decline, this trust is put to the test. Stakeholders, including shareholders, customers and regulators, may become concerned about the bank’s financial health. A robust communication strategy can help maintain and even rebuild this trust by providing clear and transparent information about the situation.

Managing Perceptions: Perception is often reality in the financial world. If a bank fails to communicate effectively during a downturn, rumors, speculations and negative perceptions can spiral out of control, damaging its reputation. A well-executed communication strategy allows the bank to shape the narrative, presenting its perspective and plans for recovery.

Employee Morale: Effective communication is not only essential for external stakeholders but also for internal ones. When quarterly earnings are down, employees may become anxious about job security and the bank’s future. A clear communication strategy that includes messaging directed at employees can help maintain morale and retain valuable talent.


A Typical Communication Strategy for Banks

Now that we understand why a communication strategy is crucial during declining quarterly earnings, let’s explore what a typical strategy should include.

Transparency and Honesty: Honesty is paramount. The bank should openly acknowledge the declining earnings and provide a candid assessment of the reasons behind the decline. Transparency ultimately fosters trust.

A Well-Defined Spokesperson: A key element of the strategy is designating a spokesperson, typically the CEO or a senior executive. This spokesperson should have excellent communication skills, be well-informed about the financial situation, and be able to convey the bank’s position clearly and confidently.

Consistent Messaging: The bank should develop a consistent message to be communicated across all channels, including press releases, social media and internal memos. This messaging should focus on the bank’s long-term vision, commitment to improvement and the steps being taken to address the declining earnings.

Regular Updates: The bank should commit to providing regular updates on its financial performance. Quarterly earnings calls, annual reports and additional updates as needed can help stakeholders stay informed and engaged.

Targeted Stakeholder Communications: Different stakeholders have varying concerns. Shareholders may be interested in recovery strategies, while regulators require compliance reports. Customers may want to know about the safety of their deposits. Tailoring messages to different stakeholder groups is essential.

Contingency Plans: A communication strategy should also outline contingency plans for different scenarios. What if the earnings decline worsens or improves unexpectedly? The strategy should address how the bank will respond in these situations.


During times when quarterly earnings are declining, a well-structured communication strategy is more than a mere PR exercise; it is a critical component of a bank’s ability to weather the storm and emerge stronger on the other side. It ensures that stakeholders are informed and trust remains intact. By being transparent, honest and proactive, banks can demonstrate their commitment to long-term success and financial stability.