FROM THE MEDIA this week

Bank earnings: Commerzbank, HSBC, SocGen, Intesa, ING

Commerzbank reported a 21% fall in second-quarter net profit to 220 million euros on the back of a sharp increase in loan loss provisions, writes CNBC. HSBC reported a 65% drop in pre-tax profits to €3.6 billion for the first half of the year, worse than expected says BBC. Société Générale took a surprise loss of €1.2 billion in the second quarter after the French bank took a hefty charge as part of an overhaul of its struggling investment bank, writes Le Monde. Intesa Sanpaolo reported a surprise rise in profit as higher-than-expected revenue helped to offset increased provisions for future bad loans, reports Nasdaq. ING, the largest Dutch financial group, reported Q2 pre-tax profit fell by 73% to 542 million euros, as it took 1.34 billion euros in provisions for bad loans, writes Reuters. CNBC Commerzbank BBC HSBC Le Monde (FR) SocGen Bloomberg Intesa Reuters ING
 

Bloomberg: European bank provisions hit €24 billion

Bloomberg notes that banks in Europe set aside approximately €24 billion to cover bad loans in the second quarter, far more than Q1 2020 but still behind the current provisions of US banks. Banks on both sides of the Atlantic saw a boost in trading revenues but still there might be reason to expect US banks will suffer more than European lenders, writes The Economist. An analysis by the Financial Times looks closer at the figures and names four trends amid the bank earnings season. Bloomberg The Economist FT(€)
 

NYT: German banks push back as American investors seek more influence

After an American private equity firm pressured two top executives of the country’s second-largest lender to quit. Now the German finance establishment is pushing back in a battle for control that may determine whether the country’s banks can arrest their slide into irrelevance, writes the New York Times. Read more
 

S&P Global: Europe's biggest banks lose 40% market value

The market value of Europe's 20 largest banks has shrunk 40% since the beginning of 2020, amid economic turmoil caused by the coronavirus pandemic and fears about a second wave, writes S&P Global. Read more
 

GlobalCapital: Bank capital: more than meets the eye

Europe’s largest lenders added an average of about 55bp to their common equity tier one (CET1) ratios in the three months between April and July, showing no signs of crisis when it comes bank capital levels, states GlobalCapital. Read more

FROM THE MEMBERS this week

Netherlands: Bank financing amid pandemic reaches €22 billion

Figures published by the Dutch Banking Association show that 158,000 small and medium businesses have received additional support from Dutch banks. With payment holidays and increased credit facilities, the total amount now reaches €22 billion in the Netherlands. Read more (NL)

Germany: How parents can save for their children

The start of school can also be exciting for parents. It is an occasion to think about the future of the little ones: the financing of your studies, training or the exchange year. Starting school is an excellent way to build a foundation for the first-year students and to start saving regularly. Read more (DE)

BANKING ESSENTIALS WEBINAR

Sustainability & Going Green: How will Banks adapt to this new world?
Tuesday 15 September

As regulatory pressure mounds, it is imperative that banks have a clear plan to address climate risks, and to finance a green agenda. Join our experts as they discuss how can bank’s achieve a successful climate management strategy. Register HERE

FROM THE INSTITUTIONS this week

ECB: Macroeconomic impact of the pandemic and policy response

In an ECB Blog published this week, ECB Chief Economist Philip Lane compares Eurostat’s flash estimate of Q2 GDP to the June ECB staff projections, noting some rebound in economic activity. However, the level of economic slack remains extraordinarily high and the outlook highly uncertain. Read more
 

EBA: Disclosure and reporting on MREL/TLAC

The European Banking Authority published today its final draft Implementing Technical Standards on disclosure and reporting on the G-SII requirement for own funds and eligible liabilities (TLAC) and the minimum requirements for own funds and eligible liabilities (MREL). Read more
 

ESMA: Call for Secondary Markets experts

The ESMA, has opened this week a call for expression of interest to renew the composition of the Consultative Working Group of the ESMA Secondary Markets Standing Committee. Experts are asked to send their application by 14 September. Read more

The European Banking Federation and fTLD Registry Services (fTLD) are partnering to educate the European banking sector about the cybersecurity role .BANK plays in protecting banks against Business Email Compromise (BEC) scams, phishing and spoofing attacks that lead to breaches, identity theft and financial fraud. fTLD administers the .BANK domain and the EBF has served on its Advisory Council since 2013. To learn more about the security benefits of .BANK, visit https://www.register.bank/ebf/ or contact fTLD at EBF@fTLD.com.

ABOUT THE EUROPEAN BANKING FEDERATION
 

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.