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Europe’s Banks Warn of Lower Rates as Commerzbank, UniCredit Hit

  • Commerzbank profit target looking ambitious as economy slows
  • UniCredit abandons revenue goal, citing low interest rates
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Top European banks warned of weaker earnings as escalating trade tensions take a toll on their clients and the prospect of lower interest rates erodes their main source of income.

Commerzbank AG said its goal of lifting profit this year is looking increasingly “ambitious” after revenue fell for a fourth quarter and it set aside more money for soured loans. UniCredit SpA slashed its full-year revenue target by 1.1 billion euros ($1.2 billion), citing expectations that interest rates will stay lower for longer. Dutch lender ABN Amro added to the gloom, saying its margins are being hit.