Financial reporting of European banks in the context of Covid-19: June 2021 update

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.

Download the report

Key findings

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.

Read the report below to find out more.

Insights

Financial services regulatory news #2

Stay up to date with financial services regulation in Europe.

Sustainable finance policy tracker

Financial services organisations around the world are rethinking how they work in order to better embed sustainability into their business models. At the same time, climate stress tests are entering the mainstream in many jurisdictions. But even though regulation is fast developing, there is still a lack of consistency in the methods used and the extent of the commitments.

Financial performance of European banks 2021 study

How is the pandemic affecting the financial performance of European banks? The Covid-19 crisis continues to undermine global financial stability. While its full impact on the banking sector is yet to be determined, the 2020 annual results let us build a picture of the Covid-19 impact on the expected credit losses (ECL) in banks’ financial disclosures.