Europe’s Banks See Drop in Loan Demand But Stay Upbeat on Profit
- HSBC CEO sees “subdued” loan growth for one more quarter
- Most banks in ECB survey say higher rates to boost margins
UniCredit headquarters in Milan, Italy.
Photographer: Francesca Volpi/BloombergThis article is for subscribers only.
Banks in Europe are facing flagging demand for loans amid rising borrowing costs and industry turmoil, but they remain optimistic about profitability from higher lending rates.
HSBC Holdings Plc Chief Executive Officer Noel Quinn this week said loan growth was “subdued” in the first quarter and may stay so for three more months. UniCredit Spa and Deutsche Bank reported lower loan volumes, while the German lender said it’s planning to cut back its mortgage business as rising rates bite.