(ANSA) - ROME, JUNE 11 - The increase in funding rates paid to customers will put an end, in the coming months, to the boom in revenues, margins and profits of European and Italian banks. A study by Bloomberg analysts points out that the peak of revenues has reached its maximum and the pressure of customers, public opinion and politics is forcing credit institutions to adjust upwards the returns applied on funding, thus narrowing the gap between active and passive rates that has allowed the sector to benefit from the numerous increases of the ECB, whose rate rose from 1.2% at the beginning of 2022 to 3.2%.
The estimates of the total revenues of European credit institutions for 2023 have thus gone from 557 billion (+16%) and those of profits to 144 billion (+31.4%). A cycle that now, they explain, "is close to its maximum point" and that could stop or even shrink. (ANSA).
For European banks coming slowdown in profits and revenues
2023-06-11T12:53:35.254Z
Highlights: The increase in funding rates paid to customers will put an end to the boom in revenues, margins and profits of European and Italian banks. A study by Bloomberg analysts points out that the peak of revenues has reached its maximum. The estimates of the total revenues of European credit institutions for 2023 have thus gone from 557 billion (+16%) to 144 billion (+31.4%). A cycle that now, they explain, "is close to its maximum point" and that could stop or even shrink.
The increase in funding rates paid to customers will put an end to the boom in revenues, margins and profits of European and Italian banks in the coming months. (ANSA)