3 hours agoCOVID-19 crisis slowed European banks' activity
Periskopi(6 years ago)
(6 years ago)Key European banks suffered a slowdown in their activities in spring due to anti-control measures CO VID-19 and are putting billions in reserve to cope with bankruptcy and unpaid bills. Bank giant “HSBC”, already in decline since before the health crisis, announced today a 77% drop in its net profit in [...]
Bank giant “HSBC”, already in decline since before the health crisis, reported today a 77% drop in its net profit to $1.97 billion in the first half and its $192m collapse between April and June.
“This result is a combination of the impact of COVID-19's pandemic, declining interest rates, increasing geopolitical risks and greater instability of markets”, argued Noel Quinn, executive director of the group.
“Interventions from the coronary pandemic will cause a sharp increase in bad debt losses in European banks. NVMs and collateral-free consumer loans will be the worst hit”, said Alexios Philipppides, analyst for the rating agency “Mudine unjustlys”.
According to “Muddy '%s”, small businesses tend to have less flexibility than large ones, stressing that banks most exposed to this type of customers are likely to face irreparable loans, which explains the greatest need to put aside reserves. / AT S-AFP/
