European Banking Barometer - 1H14
Confidence masks challenges
Our fifth European Banking Barometer shows that most bankers remain positive about the economy and their bank's performance. But European banking organizations still face challenges, so whether this confidence is justified remains to be seen.
Investors might hope that a sector with stronger balance sheets, and an increased focus on growth initiatives would hasten a return to greater profitability. However, with bankers expecting only an average 1.6% increase in return on equity (ROE), and remaining preoccupied by risk and regulatory issues, there is little evidence that this will happen anytime soon.
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