Financial performance of European banks in the context of Covid-19: benchmark study 2021

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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.

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We have analysed the annual reports of 26 banks in 11 European countries to better understand the impact of Covid-19 on their financial performance. This study is the second edition and follows on our first edition of the report released in September 2020. The study is based on audited information disclosed in the annual reports of participating banks published until 1 April 2021.

A focus on Expected Credit Losses

28% average ECL.gif

The study mainly focuses on the ECL-related impacts of Covid-19 on the European banking industry. It covers:

  • The extent to which the Covid-19 pandemic has impacted the operating profit or loss, and the 2020 ECL charge.
  • The consequences on the ECL coverage ratios and the ventilation of gross credit exposure and ECL allowance by stage.
  • What European banks disclosed on their post-model adjustments and macro-economic assumptions.

Read the report below to find out more.

Document

Covid-19 disclosed financial performance of European banks.pdf
Download pdf 10.69MB

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