How has Covid-19 affected the financial performance of banks in Europe?
We have analysed the 2021 interim reports of 26 banks in 11 European countries to better understand the impact of Covid-19 on their financial performance in H1 2021. This study is the third in its series and follows on our second edition of the report released in May 2021.
In the first half of 2021, all banks in the sample present a significant decrease in their ECL charge compared to the same period in 2020.
Most of the banks that experienced the highest increase in ECL charges last year are now among those with a net ECL profit in the first half of 2021.
100% out of 18 banks that disclosed their amounts both in H1 2021 and YE 2020 have a cumulated overlay that is an ECL charge.
The change in overlays represents on average 54% in ECL profit or loss before overlays in absolute value.