The Banker’s Top 250 European Banks ranking reveals a regional banking sector that has strengthened its hand in terms of Tier 1 capital, but continues to endure difficulties linked to weak profitability. These results indicate that most of Europe’s largest lenders are in a good position to weather the uncertainties linked to the ongoing global health crisis. Over the longer term, however, more work will be required to cut costs, improve operational efficiencies and tap into new markets if Europe’s lenders are going to forge a more sustainable growth trajectory.
Among the region’s 10 largest banks by Tier 1 capital, there have been very few changes in this year’s ranking. The UK’s HSBC and France’s Crédit Agricole maintain first and second positions respectively, while another French bank, BNP Paribas, comes in a close third. All three institutions enjoyed improvements to their Tier 1 capital positions, as well as their total assets, over the 2019 review period. But only BNP Paribas registered an increase to its pre-tax profits, which expanded by an impressive 9.1%.
