The rapid rise in interest rates over the past year has boosted European bank profits, according to a study. The operating results of private customer banks in eleven European countries increased by an average of 18 percent in 2022, and sales by 8 percent. In Germany, however, the average bank is still far less profitable than in the rest of Europe. This is the result of the analysis of the European banking sector, which the management consultancy Strategy
As in the previous year, Swiss banks made the most money with a profit of 426 euros per customer. The Austrian institutions were in fifth place with EUR 292, the German institutions in ninth place with EUR 201 and thus among the last three. The management consultancy also drew a comparison with private customer banks in the USA and Australia – the European banks grew faster and achieved higher profits per customer on average. In the years after the international financial crisis of 2008/09, US banks were still considered internationally more competitive.
“The framework conditions for European private customer banks are more favorable than they have been for a long time,” said study author Andreas Pratz. In addition to rising interest rates, according to Strategy
However, the authors warn Europe’s bankers against resting on the fruits of their labor: “The majority of private customer banks are currently on the up,” said co-author Johannes Gärtner. “But that should not hide the fact that many new providers are positioning themselves at the same time, for example from the big tech sector or the fintech scene.”
