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      French banks: sound credit profiles resilient against tighter financial conditions

      1/6/2023 Research EN

      French banks: sound credit profiles resilient against tighter financial conditions

      Pressure on French banks’ core profitability from tighter credit conditions is not denting their credit profiles. The recent round of results was solid and the prospect of better macroeconomic conditions in Europe is credit positive for the rest of 2023.

      Webinar: Falling NPL ratios hide rising vulnerabilities

      31/5/2023 Research EN

      Webinar: Falling NPL ratios hide rising vulnerabilities

      Tuesday, June 13th 2023 - 3:30 PM (CEST)

      The Wide Angle – Bank resolution: living wills should come with marriage contracts

      25/5/2023 Research EN

      The Wide Angle – Bank resolution: living wills should come with marriage contracts

      With yet another reassuring set of results behind them, Europe’s large banks look remote from resolution so now is a good time to reassess whether the existing resolution framework is still capable of delivering what it is expected of it.

      Scope updates its covered bond rating methodology

      24/5/2023 Research EN

      Scope updates its covered bond rating methodology

      The updated methodology, now final following a call-for-coment period, will apply to all covered bonds ratings.

      European banks: tighter supervision of liquidity risks not a substitute for structural improvements

      23/5/2023 Research EN

      European banks: tighter supervision of liquidity risks not a substitute for structural improvements

      US banking turmoil and Credit Suisse’s sale to UBS have highlighted how vulnerable banks still are to bank runs. Supervisors are increasingly focusing on banks’ liquidity risks.

      Spanish banks: net interest income boost more than compensates for bank levy

      22/5/2023 Research EN

      Spanish banks: net interest income boost more than compensates for bank levy

      Spanish banks reported a strong set of first-quarter results, driven by year-on-year growth of 40% in net interest income, which more than offset the impact of the bank levy. Scope expects NII to be the main tailwind for stronger earnings in 2023.

      Italian banks: strong Q1 results pave the way for a promising 2023

      17/5/2023 Research EN

      Italian banks: strong Q1 results pave the way for a promising 2023

      Prospects for 2023 earnings at Italian banks have improved. Latest projections point to year-on-year growth in net interest income of around 27% at the same time as cost of risk guidance was confirmed despite record-low levels in the first quarter.

      US woes reveal where covered bonds are most vulnerable

      16/5/2023 Research EN

      US woes reveal where covered bonds are most vulnerable

      Recent events regarding Credit Suisse and US regional banks have a direct read-across to covered bonds in that it was not credit quality but liquidity that led to the banks’ downfall, plus the crystallisation of market-value losses on high-quality assets.

      Asset-quality review: falling NPL ratios hide rising vulnerabilities

      11/5/2023 Research EN

      Asset-quality review: falling NPL ratios hide rising vulnerabilities

      We expect non-performing loans to rise in 2023 as inflation and higher interest rates weigh on demand and profits. This will reverse the trend of the past decade but banks are well prepared to face any deterioration in asset quality.

      Party over for European homeowners

      9/5/2023 Research EN

      Party over for European homeowners

      The uncertain economic environment continues to push European house prices lower. But challenges are also crystallising in net residential mortgage lending, which nosedived to almost zero in the half year to February 2023, only slowly reverting in March.