The big European Banks are having profits again
14 Dec
The data from the big European Banks showed that the worst of the financial crisis is over. The third quarter profits from main entities( excepting the British ones, that do not have Quarter results) has been higher than €9600 million this year, this supposes an increase by 73% from the same period in 2008.
From the Big European banks, only the Swiss UBS is continuing with red figures, with 374 millions in loses, while Credit Suisse and ING are having profits again. Santander with €2,221 in profits this quarter, is the first of the ranking, followed by Credit Suisse, BBVA, and Deutsche Bank.
The recovery seems weaker if we take data relative to the whole year, when the 11 examined European banks won €24,770 million, a 17,6% more. Looking at the accumulated, ING hasn’t still left loses, and UBS is losing still more money, up to €2,600 million.
Santander is keeping the leadership in profits in this temporary landscape, While the French BNP Paribas is the second, just before BBVA.
European banks are doing just the opposite than Goldman
Most entities, after being affected by the financial crisis, have centered efforts to increase income from retail banking, reducing exposure to investment banking. Solvency is another key point for the big European banks as large part of them (except Santander and BBVA) needed public help to survive the financial crisis.
The reinforcement of capital ratios, the amount of capital needed to hold a certain amount of assets according the risky they are, is being searched in two ways,for one side, big European banks are beginning to reduce their risky assets, and for the other, some banks are increasing capital.
Contention of expenses is another of the key points in the budgets of main European Banks, as they have to increase provisions in order to struggle with the increment of defaulting during the financial crisis.
Related posts:
- According CreditSights the debt of European Companies is Dangerously High
- The profits of Google under the sight of the market.
- The United Kingdom, Germany and France will charge a new tax to the banks
- Profits in Wall Street While the Dow Jones is Still under 10,000 points
- The government will charge a responsivility tax to the big banks
Micro data, macro conclusion. No wonder I’m the only commenter so far…
You aren’t the only commenter, I had to erase a horde of spammers.
I know what that’s like. Still think the recovery is underway?
And again I ask, sirrah, still think the recovery is underway? A rhetorical question, meant to prod the Web Tycoon into taking more than bankers’ ledgers into his philosophy of what entails economic recovery. Or just to admit he’s wrong, as rare in expert blogs as a straight waiter in Los Angeles.