Regulatory Insights
Expert analysis on the latest regulatory insights in the UK.
Financial reporting of European banks: benchmark study 2024
Is the perceived reduction in risk among European banks an early sign of sector-wide optimism? In 2023, we faced a global economic slowdown, persistent geopolitical tensions, and rapid technological advancements. Analysing the year-end results of Europe’s 26 largest banks, what insights can we gain about expected credit losses and the strategies these institutions implement to manage ongoing uncertainties in the banking sector?
We have examined the 2023 year-end reports of 26 banks across 12 European countries to assess the impact of financial turbulence and ongoing geopolitical crises on their Expected Credit Losses. This study marks the eighth in the series, continuing previous editions of the report which first launched in 2020.
Expected Credit Losses
Our report largely focuses on the ECL-related impacts, with key insights on:
- ECL charge impact of Year End 2023 on the profit or loss and ECL allowances
- ECL allowances: changes in coverage ratios and allocation between stages
- Post-model adjustments and overlays
- Forward-looking information
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Banking & Capital Markets
Our banking practice is led by a dedicated team of former regulators, industry executives and senior professionals with a wealth of knowledge and practical experience.
Financial reporting of European banks
How has the financial performance of European banks fared amidst economic turbulence in recent years? Global inflation ensuing the war in Ukraine and the aftermath of the Covid-19 crisis have collectively affected the financial services industry, undoubtedly impacting the expected credit losses (ECL) in banks’ financial disclosures.
National contacts
Gregory Marchat Partner, Group head of financial services advisory London
Rudi Lang Partner – Global Head of Financial Services - London
