Germany’s leading banks are facing falling profitability due to falling profits and rising costs over the next two years.
This is reported by Bloomberg agency with reference to the research of consulting company Oliver Wyman (USA).
It is expected that German banks’ revenues may decline by 4% due to lower interest rates and stalled loan growth.
At the same time, as noted, the costs will grow by 2% per year, which is due to the increase in employee salaries, despite the reduction in the number of staff.
It is noted that in January, German bank Deutsche Bank AG announced a possible reduction of inefficient divisions to improve profitability, after refusing to achieve a key performance indicator this year.
Earlier it was reported that the EU initiative to provide loans of up to € 150 billion for defence may be derailed due to disagreements between France and Germany.
