European Bank Profit Hurt by Loan Provisions, E&Y Says
This article is for subscribers only.
Euro-region banks’ profit growth may be hampered by provisions for bad loans as the European Central Bank leads a review of lenders’ asset quality, Ernst & Young LLP said in a report.
Total bank operating income is expected to rise 7.1 percent in 2014, after increasing 1 percent this year, led by lenders in Italy, Germany and France, according to the report, published today. That’s less than the 7.6 percent 2014 growth and the 2 percent 2013 increase estimated by Ernst & Young in July.