Leading European banks have started to publish reports on its activities for the second quarter, which were the most stringent of restrictive quarantine measures. The British Barclays profit fell 75% and the loss of the Spanish Santander amounted to a record €11 billion against the background of separation of large reserves to cover losses on unpaid loans. To soften the blow from quarantine failed banks that have developed investment transactions on the trade securities and currency — revenue Deutsche Bank (DB) from such operations in the second quarter jumped 39%.The beginning of the quarterly reporting season in the European banking sector generally confirmed the trend identified earlier by us banks. Financial companies have to set aside huge reserves to cover losses from defaults on loans that consumers and businesses has become very difficult to maintain under strict quarantine and the sharp slowdown in economic activity. Spanish Santander announced that, despite only a 10% decrease in total revenue in the second quarter (with €8.5 billion to €7.7 billion), he was forced to allocate €7 billion to cover credit losses. A further €3 billion Spanish Bank was forced to write off impaired assets. As a result, the second quarter net loss of Santander amounted to €11.1 billion, whereas in the first quarter, the Bank was able to obtain a net profit of €331 million British Barclays, in the second quarter managed to remain in profit, although it fell by 75% to £360 million, while a year earlier the profit was at £1.5 billion the Bank had to make substantial provisions to cover credit losses, although significantly less than the Spanish competitor,— £1.6 bn With that Barclays in the first quarter began to allocate reserves to cover credit losses in the first half of the total volume of such reserves was £3.7 billion After the publication of statements of Barclays shares fell in price by 6%, as analysts had expected more profit from the Bank — at £491 million, the Bank said that the diversification of operations has enabled it to mitigate the impact of the second quarter in the loan market, but high volatility in the securities market that began in March, has allowed to achieve good results trading units.Trading in securities helped to mitigate the effects of rigid quarantine for Deutsche Bank. Despite the fact that in recent years, this German Bank is going through a difficult phase of complex transformation and litigation in the second quarter, he even managed to obtain a net profit of €61 million, while a year earlier it had recorded a net loss of €3.1 billion compared to the Barclays and Santander especially with dedicated DB reserves to cover credit losses in the second quarter proved to be highly tempered glass��mi — €761 million Revenue from transactions on trading bonds and currencies rose 39%, to €2.1 billion, while revenue trading operations by 75%. Thus European banks have followed another trend identified by us banks. As noted in a Forbes interview, portfolio Manager of the investment company Gabelli Global Financial Services Fund Ian Lapi, in the current environment, “banks, whose business is a large share of investment and trading transactions as opposed to traditional lending, feel much better.”Eugene Tail
