Logo of the auditing company Ernst & Young (EY) in an office building. (Rolf Vennenbernd/dpa/archive)
Europe's major banks are increasingly lagging behind their US competitors, a new study has found. Last year, the 10 largest US banks together earned at least two and a half times as much as their European competitors.
According to a study by the consulting and auditing firm EY, the 10 largest banks in Europe increased their profits by 35 percent to a total of 52 billion euros last year, measured by their balance sheet total. The banks on the other side of the Atlantic saw a plus of 88 percent to the equivalent of 138 billion euros.
The financial institutions in Europe have continued to feel a strong headwind, especially the banks in the euro zone: "They are suffering from the low interest rate policy of the European Central Bank and even have to pay high penalty interest on deposits," explained EY expert Claus-Peter Wagner. A weakening economy is also slowing business down, while many banks are also still suffering from the legacy of the financial crisis.
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