Return on equity disappeared in Q2, says ECB

EU_shadows_575x375_Adobe_020420
By Tyler Davies
07 Oct 2020

Euro area banks delivered 0% return on equity in the second quarter, according to new figures from the European Central Bank. The industry is grappling with a decline in income and a sharp surge in loan loss provisions amid the Covid-19 pandemic.

The ECB published its latest supervisory banking statistics on Tuesday. The figures revealed that return on equity (RoE) slumped to 0.01% for the main euro area banks in the second quarter of 2020. 

RoE was calculated on annualised basis as net profit or loss, divided by equity and ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial