The rating agency, DBRS Morningstar, warns that this and next year will be a challenge for the European banking sector. "There will continue to be trends towards high provisions for expected credit losses, for weakened profitability in most banks, potentially stronger profits in investment banking and high extraordinary costs, such as the devaluation of Santander goodwill [Spain]," he told the Economic Journal Elisabeth Rudman, Head of European Financial Institutions, DBRS.
In the first half of the year, BCP and Santander Totta, the two major banks that have already presented their accounts, confirm pressure on revenues, with no prospect of reversing the trend until the end of the year. Santander Portugal's banking product fell 1% compared to June last year to 6,3 million. Much at the expense of the 660% drop in net interest income (revenue from the difference between interest on loans and deposits), to 6,8 million euros.
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