EU compare to that of US Banking
How does European banks’ 2017 performance compare to that of their US
peers?
Banks on the other side of the Atlantic have been posting all-time high
(nominal) net income for several years. Not so for 2017, when it fell 3.5% yoy to
USD 165 bn for the entire industry (which is roughly the same size as the top 20
European banks). However, the sole reason was the large-scale tax reform
pushed through in December, which led to an aggregate negative impact on
bank profits of USD 17 bn. Without this one-off hit, US banks would have
basked in another set of record results.
From that perspective, European banks
still have a long way to go, despite the several steps forward which they made
in 2017.
EU Forecast
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