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Europe's largest banks made over €100 billion ($108 billion) in profit for the first time in 2023, thanks to rising interest rates. The combined net income of the 20 biggest continental European banks that reported results increased from €78 billion to €103 billion. Three-quarters of the banks achieved their highest profits ever. While it may be difficult to replicate this level of profit growth in the future, many banks are optimistic that rising fee income will continue to drive growth. The data does not include UBS Group AG, which saw a surge in profit due to its acquisition of Credit Suisse. [Extracted from the article]

Read More: Banks Profit Like It's 2007, Yet Rate Binge Won't Last Forever The difference between what banks pay for deposits and what they charge for loans is known as net interest income, and it's been surging as a result. (Bloomberg) -- European savers are increasingly moving their money from accounts that offer no or little interest to those that do, a shift that's likely to cut into lenders' income. [Extracted from the article]

BaFin's Roeseler cited inflation and supply chain constraints as some of the biggest risks for the economy and noted the pandemic isn't yet over either. (Bloomberg) -- Europe's banks have remained sanguine on their outlook for this year, a war on their doorstep and rampant inflation notwithstanding. [Extracted from the article]

(Bloomberg) -- The next milestone in Europe's efforts to create a global benchmark for ESG investing has been shelved indefinitely as officials balk at devoting resources to a process that's already marred by deep political division, according to people familiar with the matter. Read More: Big Finance and Activists Slam "Disappointing" EU Gas Vote Meanwhile, interest groups have used delays in the process around the social taxonomy to try to persuade EU officials to include more asset classes. [Extracted from the article]

While the metrics used differ slightly from bank to bank, the message is the same: They're ready to make money again, after more than a decade of low and even negative interest rates during which returns rarely topped 10% on the invested capital. As interest rates finally inch up, European banks are telling investors to expect something they haven't seen in almost 15 years: returns in the teens. [Extracted from the article]

As interest rates finally inch up, European banks are telling investors to expect something they haven't seen in almost 15 years: returns in the teens. While the metrics used differ slightly from bank to bank, the message is the same: They're ready to make money again, after more than a decade of low and even negative interest rates during which returns rarely topped 10% on the invested capital. [Extracted from the article]

Keywords: BARC@LN; DBK@GR; ALLTOP; BNK; BUSINESS; COS; EUROPE; FIN; GER; GLOBALMACR; INDUSTRIES; TOP; WORLD; WWTOP; WWTOPAM; WWTOPAS; WWTOPEU EN BARC@LN DBK@GR ALLTOP BNK BUSINESS COS EUROPE FIN GER GLOBALMACR INDUSTRIES TOP WORLD WWTOP WWTOPAM WWTOPAS WWTOPEU Barclays Plc is planning to boost bonuses at its corporate and investment bank by more than a quarter amid record results and intense competition for top talent, a person familiar with the bank's plans said. Lenders across the U.S. and Europe have seen profits surge at their investment banking units this year, with deal making at record levels. [Extracted from the article]

(Bloomberg) -- Top European bank executives urgedlawmakers to move past deadlocks that have held up thebloc's project for a unified banking and capital marketand hampered their ability to compete with Wall Streetpeers. The lack of a single capital market in the region haslong held back retail investing and left companiesreliant on bank lending. The market valuation of Europe's largest banks includingDeutsche Bank is a fraction of their U.S. peers, and theGerman lender's stock price in particular has suffered,trading some 88% below its peak just before the financialcrisis. [Extracted from the article]

(Bloomberg) -- European banks are walking a narrower tightrope than usual this bonus season as they seek to pay enough to keep top traders and investment bankers motivated while not attracting the ire of regulators. At Deutsche Bank, fixed-income trading revenue soared 28% last year, while Credit Suisse's equity-capital markets bankers oversaw a tripling of revenue in the fourth quarter as demand for special purpose acquisition companies soared. [Extracted from the article]

(Bloomberg) -- European banks are walking a narrower tightrope than usual this bonus season as they seek to pay enough to keep top traders and investment bankers motivated while not attracting the ire of regulators. At Deutsche Bank, fixed-income trading revenue soared 28% last year, while Credit Suisse's equity-capital markets bankers oversaw a tripling of revenue in the fourth quarter as demand for special purpose acquisition companies soared. [Extracted from the article]

(Bloomberg) -- European watchdogs are leaning toward extending the de facto ban on bank dividends well into next year, while allowing some lenders to make payouts if they can show sufficient financial strength, according to people familiar with the matter. Maintaining the ECB's recommendation that banks not pay dividends while putting the burden of proof on lenders to demonstrate that they can could be a compromise in the debate among watchdogs. [Extracted from the article]

Europe's largest banks are resuming plans to cut thousands of jobs after putting dismissals on hold to show support for employees after the coronavirus outbreak spread across the continent. HSBC Holdings Plc became the latest lender to restart reductions with a plan to eliminate as many as 35,000 jobs. Here are the other European banks that have restarted cuts: Deutsche Bank The German lender last month became the first leader of a major bank to resume job cuts halted because of the pandemic. [Extracted from the article]

European banks are scrapping payouts to protect their capital cushions because of the fast-deteriorating economy. "We oppose a general bonus cut because the bonus pool doesn't only include staff with very high salaries", said Szukalski, who also sits on Deutsche Bank AG's supervisory board. [Extracted from the article]

Europe's Banks Are Scrapping Dividends. As with dividend cuts, Spanish banks have been among the first to kick off the Europe-wide trend, with Banco Bilbao Vizcaya Argentaria SA on Monday saying that 300 of its top executives waived their 2020 bonuses. "We oppose a general bonus cut because the bonus pool doesn't only include staff with very high salaries", said Szukalski, who also sits on Deutsche Bank AG's supervisory board. [Extracted from the article]

Europe's Banks Are Scrapping Dividends. Enria, in the interview, said that bonuses right now are less of a concern than dividends because many banks have already paid them. "We oppose a general bonus cut because the bonus pool doesn't only include staff with very high salaries", Szukalski, who also sits on the bank's supervisory board, said in the email. [Extracted from the article]

Europe's banks want you to know they're safe. The Stoxx Europe 600 Banks index is down more than 40% since the crisis onset on Feb. 20, while the price for insuring against banks defaulting on their bonds -- known as credit-default swaps -- has surged to new highs. [Extracted from the article]

(Bloomberg) -- Europe moved to provide relief for its ailing banks as efforts to combat the coronavirus threaten to push more borrowers into default and disrupt lending. "If we apply EU prudential rules too strictly, that means it will weigh on the balance sheets of banks and so banks will be nervous to delay loan maturities", Le Maire said. [Extracted from the article]

(Bloomberg) -- European officials are considering loosening some bank rules as efforts to combat the coronavirus threaten to hurt lenders still weakened by years of negative interest rates. "If we apply EU prudential rules too strictly, that means it will weigh on the balance sheets of banks and so banks will be nervous to delay loan maturities", Le Maire said. [Extracted from the article]

(Bloomberg) -- A Deutsche Bank AG employee in Frankfurt and another at KKR & Co. in London contracted the coronavirus, setting off swift measures to contain potential outbreaks. Deutsche Bank began moving investment-banking staff in London to separate offices as another precautionary measure, the lender's U.K. Chief Executive Officer Tiina Lee said in a Bloomberg TV interview Monday. [Extracted from the article]

(Bloomberg) -- A Deutsche Bank AG employee in Frankfurt and another at KKR & Co. in London contracted the coronavirus, setting off swift measures to contain potential outbreaks. The Frankfurt-based lender said employees working remotely won't be allowed at offices where they aren't assigned and that staff should avoid meeting socially with any colleagues stationed elsewhere. [Extracted from the article]

(Bloomberg) -- Commerzbank AG wants Europe's banks to adopt a unified front dealing with providers of cloud services, as more move their data to such external storage centers to cut costs. Tomak now said that the alliance with other EU banks that Commerzbank is seeking to build is addressing the issue of over-reliance on the US firms. [Extracted from the article]

(Bloomberg) -- Five years after Mario Draghi turned the world of European banking upside down, lenders are considering breaking a last taboo: Negative interest rates for the masses. After cutting thousands of jobs with no end in sight, even a bank like Commerzbank -- which has lured more than a million new clients by handing out cash to anyone opening an account -- is entertaining the idea of eventually passing on the ECB's punitive rates, even if it's hypothetical for now. [Extracted from the article]

European banks should consolidate and slash costs if they want to address their chronic challenges, according to a senior executive at Goldman Sachs Group Inc. The European banking market is also much more fragmented than in the U.S., and many banking executives have called on politicians to accelerate creating a banking union that would facilitate cross-border bank mergers by enabling lenders to move funds across countries. [Extracted from the article]

Europe head slashes number of regional managers in reshuffle Deutsche Bank AG's new European wealth management head, Claudio de Sanctis, slashed the number of regional managers and announced aggressive hiring plans in a bid to jump-start revenues at the unit. [Extracted from the article]

Firm to reduce U.S. rates, plans to cut back global equities Deutsche Bank AG is abandoning its ambitions to be a top global securities firm as it embarks on possibly the most sweeping overhaul yet of its struggling investment bank. [Extracted from the article]

Deutsche Bank AG cautioned that its securities unit was facing headwinds this quarter from a stronger euro and higher funding costs for the business, less than a week after predicting higher full-year trading revenue. Both Deutsche Bank and Credit Suisse extended losses on Thursday, with Deutsche Bank falling 1.9 percent as of 12:18 pm in Frankfurt and Credit Suisse declining 2.8 percent in Zurich. [Extracted from the article]