BANCI | ENGLISH

EBA updates on risks and vulnerabilities in the EU banking sector

Autor:

2015-12-25 16:50

EBA updates on risks and vulnerabilities in the EU banking sector (press release):

The European Banking Authority (EBA) published today its eighth semi-annual report on risks and vulnerabilities in the EU banking sector. The report shows that EU banks have continued to strengthen their capital position and to improve asset quality. However, the level of non-performing exposures remains high and profitability is still weak. The report also analyses the exposures towards emerging market (EM) countries and non-bank financial intermediaries.

Throughout the first half of 2015, EU banks continued to strengthen their capital ratios, mainly due to retained earnings. Banks’ equity tier 1 (CET1) ratio was 12.5 % in June, 40bps higher than in December 2014(1). This improvement has been accompanied by a modest recovery of loans and increase in risk-weighted assets.

Asset quality improved although trends differ significantly across countries and banks. The ratio of impaired and past due loans to total loans decreased to 6.4 % in the first half of 2015, compared to 7 % at the end of 2014, and the coverage ratio increased. Banks’ expectation of further gradual improvements in asset quality depends on the progress of economic recovery, which in turn is strongly dependent on developments in emerging markets.

Banks’ return on equity was 7.8 % per June 2015, 210bps higher than one year before. Despite the improvement, profitability remains weak. Banks’ interest margins continue to be under pressure in a context of low interest rates. Moreover, the level of impairments, still high in many jurisdictions, together with conduct-related costs and low efficiency ratios keep their negative drag on banks’ profitability.

Volatility in banks’ funding spreads demonstrates an overall fragile state of financial markets. While no major constraints could be observed in the issuance activity for secured and unsecured instruments, issuance volumes of subordinated funding have partially been subdued. On the other hand, banks have even been able to increase volumes of customer deposits even though interest rates for deposits have been on long-time lows.

Source: EBA press release

Taguri:

Comentarii

Nu există comentarii pentru această știre.

Adauga un comentariu

Alte stiri din categoria: ENGLISH

Neutral interest rate in Romania

The neutral nominal rate in Romania has been falling since the start of inflation targeting in 2005. The Taylor Rule clearly shows that interest rates peaked in 2022 and have been on a clear downward path ever since.Furthermore, the model estimates a long-term neutral nominal rate of around 3.9%, which is the equivalent of approx. 1.4% real.Using a more sophisticated model (i.e. New York FED’S HLW model), the real neutral interest rate in Romania is estimated currently at around 1.5% (1.7% 2023 average) and the historical mean at 1.2%.This implies a neutral nominal rate between 4.00% and 4.50%. In the past decade, the NBR real effective rate was below the neutral rate and only over the past year climbed above the neutral mark.Source: Erste Bank

Merger of Alpha Bank and UniCredit Bank Romania

Press Release:"Alpha Services and Holdings announces a strategic partnership with UniCredit in RomaniaMerger of Alpha Bank Romania and UniCredit Bank Romania and creation of third largest bank in Romania by... detalii

National Bank of Romania (NBR) Board decisions on monetary policy

NBR Board decisions on monetary policyIn its meeting of 4 April 2023, the Board of the National Bank of Romania decided:• to keep the monetary policy rate at 7.00 percent per annum;• to leave unchanged the lending (Lombard) facility rate at 8.00 percent per annum and the deposit facility rate at 6.00 percent per annum;• to keep the existing levels of minimum reserve requirement ratios on both leu- and foreign currency-denominated liabilities of credit institutions.The annual inflation rate went down to 15.52 percent in February 2023, from 16.37 percent in December 2022, relatively in line with forecasts. The decrease was mainly driven by the sizeable drop in the dynamics of fuel and electricity prices, under the impact of significant base effects and the change made to the energy price capping and compensation scheme starting 1... detalii

ING posts 2022 net result of €3,674 million, dividend of €0.389 per share

ING press release:ING posts FY2022 net result of €3,674 million,proposed final 2022 dividend of €0.389 per share 4Q2022 profit before tax of €1,711 million; CET1 ratio remains strong at 14.5%•Profit before tax up 29% on 4Q2021 and 24% on 3Q2022, mainly driven by higher income•Higher net interest income, as a further increase in liability margins helped offset TLTRO impact this quarter•Risk costs declined to 17 bps of average customer lending Full-year 2022 net result of €3,674 million, supported by growing customer base and increase in lending and deposits•On a full-year basis, our primary customer base grew by 585,000•Net core lending growth of €18 billion and net core deposits growth of €25 billion in 2022•Net result of €3,674 million in a challenging year; proposed final 2022 dividend of €0.389 per share CEO statement“Looking back, 2022 was... detalii