zeb.market flash (Issue 18 – July 2016) Capital markets hit by Brexit vote— uncertainties are poisoning market conditions of EU banking industry

Key Topics

I. State of the banking industry

  • The Brexit decision on June 23rd discontinued the positive trend of the first two months of the second quarter in 2016
  • While banks from BRICS and the US showed a positive TSR, European banks ended Q2 with a loss of
    8.2% on average

II. Economic environment and key banking drivers

  • Persistent low inflation rates and economic uncertainty support the low interest rate policy—money and capital market rates decreased further
  • The Brexit decision shows its first impact leading to a decline of the British pound
  • Reported figures from Western Europe and BRICS banks showed solid profitability in the first quarter of the year, while US banks reported decreasing results for the fourth time in a row but still remain on a higher level than European banks

III. Brexit consequences for the European banking industry

  • The Brexit decision caught the capital markets on the wrong foot—European banks were hit hard
  • Global and large European banks have to deal with market uncertainty and essential issues regarding fundamental changes of legal entity structures and the operating model
Download zeb.market.flash (issue 18)

Don't miss a trend with BankingHub!

Get informed by our experts about what is important—every 2 weeks directly into your inbox.
Author Dr. Dirk Holländer

Dr. Dirk Holländer

Senior Partner Office Frankfurt

Volker Abel

Senior Manager zeb Frankfurt
Author Dr. Ekkehardt Bauer

Dr. Ekkehardt Bauer

Senior Manager Office Münster

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletter

Get informed by our experts about what is important—every 2 weeks directly into your inbox.