zeb/market flash (Issue 2 – July 2012) Another endgame of the euro – Desperate banking industry losing value, trust and track in Q2 2012

Key topics

1. Global economic climate

  • Debt crisis heats up again in Q2 2012, leading to an economic downturn globally and especially in Western Europe
  • Greek haircut on debt in March 2012 was no sustainable solution – high Southern European refinancing needs may become decisive for the euro

2. Key banking drivers

  • Banking industry negatively affected by growing market uncertainties – most key drivers and consensus forecasts show weak performance
  • Latest scandals (e.g. Barclays and JP Morgan) aggravate negative sentiments

3. State of the banking industry

  • Banking industry with TSR performance of -9% in Q2 2012 and -17% in last 12 months among weakest industry sectors
  • Conditions for funding and capitalization remain challenging, esp. for Western European and US banks
Picture: Skyline Singapur
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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

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