The big US-banks have made in 2018 once again, significantly more Profit than their European competitors. The US institutions played when profit “in another League”, the consulting firm EY.
A on Tuesday published study by the consulting firm Ernst & Young (EY), according to Europe’s big banks will lose in the face of competition from the United States. The ten largest U.S. homes have earned in the past year, well two and a half times as much as their competitors in Europe. Also: this will not change in the current year, the gap will continue to grow.
The U.S. banks closed last year, according to EY, with a profit after tax of the equivalent of 138 billion euros, which was an increase of 88 percent. The European institutions increased their Profit by 35 percent to 52 billion euros. Among the studied large US banks including JP Morgan Chase, Bank of America and Citigroup, in the case of the European, it was next to the Deutsche Bank, British HSBC and the Swiss Bank UBS.
Where Contaminated sites, press …
The money institutes in Europe, felt as strong against the wind, especially the banks in the Euro area: “you are suffering from the low interest rate policy of the European Central Bank and even pay high penalty rates on deposits,” said EY expert Claus-Peter Wagner. A weakening economic brake in addition to the business. Also, many institutions have suffered still under the Contaminated sites.
… and where Federal money helps
The US government had forced the banks after the financial crisis of 2007/2008, the way state money is prescribed and made, according to many experts, the financial sector recovered significantly faster.
In the past year, the US banks benefited Wagner, however, also special effects of US tax reform. At the same time, rising interest rates resulted in higher interest revenue. The interest income is an important income sources of the money houses.
Suspended: Deutsche Bank
A very unequal duel
The winning strongest institution was reported to be the major US Bank JPMorgan Chase, which earned, after taxes, 28 billion Euro. In Europe, the British HSBC was close to 12 billion euros in the front. The only German money house among Europe’s Top Ten, the German Bank, came under the line, just once, to 267 million euros.
Nothing is improving – and then the Brexit.
“The U.S. institutions in terms of the profit in a League of its own,” stated Wagner. “The bottom line is that the US banks have a significantly higher profitability and better capital adequacy is currently much better.”
The EY-expert assumes that the business environment for Europe’s banks will not improve in the current year, fundamentally: “the end of the period of low interest rates is still not in sight, many banks account for the interest the business little or no profits.”
In addition, the uncertainties of the Brexits threatened to paralyze the economy. The consequence is that, In most institutions, the axe will set. “We will continue to see a string set and store closures,” predicted EY-expert Wagner.
dk/hb (dpa, afp)