Banks Turn to Fee Business as End of Europe’s Rate Boom Looms
- Alternative income sources to NII in focus for driving growth
- Tough time for European economy makes lower rates likely
A branch of Commerzbank AG in Berlin, Germany.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
Europe’s banks are boosting investments in their fee-generating units as they prepare for the expected end to the massive tailwind they’ve been enjoying from interest-rate hikes.
Boosting fee income will be “a focus point of our growth initiative” for the next several years, Commerzbank AG’s Chief Financial Officer Bettina Orlopp told Bloomberg TV on Wednesday. Wealth management and asset management have been earmarked for growth, she said.