Euro area banks see net profit fall 20 percent in first quarter: ECB
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
The Euro sign sculpture stands in front of the headquarters of the former European Central Bank (ECB) in Frankfurt June 10, 2010. The large blue and yellow sculpture was made by German artist Ottmar Hoerl in 2001. Picture taken June 10, 2010. REUTERS/Ral
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
FRANKFURT (Reuters) - Euro area banks saw their profits fall by a fifth in the first three months of this year as they made less money from trading and most other business areas, European Central Bank data showed on Wednesday.
The ECB survey painted a gloomy picture, with all the main sources of profit for banks - lending, trading and fees - down from the year before. Net profit fell by 20 percent year on year to 18 billion euros ($20.25 billion).
The net result from trading and foreign exchange was one of the main culprits for that drop as it fell by 41 percent to 10.8 billion euros.
Other income streams - such as net interest on loans, dividends, and fees and commissions - also declined, albeit more modestly.
Banks have blamed the ECB's policy of ultra-low rates, which includes charging banks for the excess cash they park at the central bank, for eating into their profits.
In cash-rich Germany, several banks have responded by charging fees on bank accounts or charging corporate clients a percentage charge on large deposits.
The ECB has maintained its policy has done more good than harm but it has acknowledged it comes with side effects.
The central bank, which is both the euro zone's monetary authority and its chief bank supervisor, has told banks to cut costs and make their business models less reliant on interest rates.
($1 = 0.8890 euros)
(Reporting by Balazs Koranyi and Francesco Canepa; Editing by Alison Williams)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Coty (COTY) Raises Quarterly Dividend 81.8% to $0.125; 2.6% Yield
- South Korea central bank: market impact of impeachment vote seems limited
- Aetna CEO defends merger with Humana in antitrust trial
Create E-mail Alert Related CategoriesReuters
Related EntitiesEuropean Central Bank, Dividend
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!