Increase in rates brought European banks an additional profit of €110bn
In 2023, the net income of European banks from interest increased by 40 percent due to an increase in interest rates, Azernews reports, citing the Swiss bank UBS.
According to calculations, the increase in rates brought banks additional profits of almost 110 billion euros. If in 2021, that is, before central banks began to raise key rates, the net income of European banks amounted to 270 billion euros, then this year, according to UBS estimates, it will reach 378 billion euros. Thanks to this, banks have increased their dividend payments to shareholders: from 90 billion euros in 2021 to 121 billion euros this year.
Despite the revenue growth, the market capitalization of European banks still lags significantly behind their American competitors. Among other factors, the fear of recession, low demand for loans, possible increase in capital requirements and an increase in the number of bankruptcies at the beginning of the year have a negative impact on their shares.
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