6036
Global Banks Return to Profit, Europe Far Behind
World Economy

Global Banks Return to Profit, Europe Far Behind

The global banking industry has moved beyond recovery and regained overall profit for the first time since the financial crisis, although European lenders are still lagging far behind rivals, an industry study showed.
“Banks in North America are again growing and showing sizable economic profit, while those in Europe show little sign of recovery,” Boston Consulting Group (BCG) said in its Global Risk 2014/15 report, released on Tuesday and quoted by Reuters.
Economic profit (EP) is a measure of profitability that includes refinancing, operating and risk costs against income.
Banks generated an EP of 18 billion euros ($22.5 billion) in 2013, or 3 basis points of total assets, compared with negative EP of between 6 and 23 basis points in the previous four years, BCG said. Its latest study was based on more than 300 banks, representing over 80 percent of global bank assets.
Banks in North America produced an economic profit of 25 billion euros, and profitability also improved in the Middle East and Africa. The study said banks in Asia-Pacific produced the biggest EP of 112 billion euros, near flat from 2012.

 Europe Losses Continue
Banks in Europe delivered negative EP of 136 billion euros last year, from negative 161 billion in 2012, to take their losses since 2009 to 600 billion euros, the study said.
Eurozone banks have been slow to rebuild their capital strength and restructure against a difficult economic backdrop. Improving their profitability is their biggest challenge and they may need to sell off more loss-making units, the euro bloc’s top banking supervisor said on Friday.
BGC’s report said banks are entering a new era of regulation in which every region, product and legal entity will be closely regulated, reflecting regulators’ intent to trigger cultural change.
“Banks should adopt a ‘good citizen’ approach that embraces and proactively addresses the broad intent of today’s hyper-regulation.”

Short URL : http://goo.gl/71z0M9

You can also read ...

Both, Russia and China, have intensified efforts in recent years to settle bilateral trade not in US dollars, but in rubles and yuan. Gold is considered important by both countries.
The issue of when a global reserve currency begins or ends is...
Norway’s Sovereign Wealth Fund  Hits $1 Trillion
The Norwegian sovereign wealth fund, the largest in the world...
Janet Yellen
As the Fed starts unwinding the stimulus it provided to snap...
London, Frankfurt and Paris fluttered between flat to slightly lower after eight days of gains.
Record-high world stocks paused on Tuesday and the dollar...
Kazakh Economy Grows by 4.3%
The economic growth in Kazakhstan was at 4.3% since the...
Ukraine Raises $3b in First Bond issue
Ukraine has raised $3 billion in its first sovereign bond...
Dutch Economy Doing Fine
The Dutch economic machine is roaring, government or not. As...
The IMF could write off its debt and lighten Greece’s burden.
“Beware of Greeks bearing gifts,” wrote the ancient Roman poet...

Trending

Googleplus