The European Central Bank: the collapse of the profitability of the eurozone banks in the second quarter

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The European Central Bank: the collapse of the profitability of the eurozone banks in the second quarter


Tuesday – 19 Safar 1442 AH – 06 October 2020 CE


Brussels: «Middle East Online»

The European Central Bank said today (Tuesday) that the profitability of the largest banks in the euro area collapsed in the second quarter of the year even though banks managed to keep their bad loan balances low.
The bank stated in its quarterly statistics that the return on capital in the first half of the year, the height of the Corona pandemic, was 0.01 percent; Which is sharply lower than 6.01 percent in the same period a year ago; At least seven of the 19 countries in the euro area recorded negative returns.
Meanwhile, the value of bad loans reached 503 billion euros; This is not much more than 501 billion euros in the previous three months, most likely because deferrals of government loans and guarantees helped banks keep the loans as performing.

Europe

European economy







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