European bank performance - As good as it gets, despite recent wobbles?
Jan SchildbachEuropean banks are running at full steam, achieving the best start to a year since the financial crisis – the stress in March notwithstanding.
European banks are running at full steam, achieving the best start to a year since the financial crisis – the stress in March notwithstanding. Revenues have been buoyed by exceptional growth in interest income, while provisions for loan losses have fallen back again and costs remain in check. Capital and liquidity positions continue to be very robust, in spite of ample returns to shareholders and TLTRO repayments to the ECB. There are some clouds on the horizon though: interest rate increases are likely coming to an end and loan growth may slow further.
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