Standard & Poor's yesterday added to the gloom gathering over the banking sector with a European “report card” warning of “vanishing prospects for a quick rebound”.
Scott Bugie, the ratings agency's managing director of financial institutions, pointed to mounting bad debts on corporate and consumer lending as a dangerous drag on bank profitability for the next two years.
“Credit losses this year among the largest 50 European banks will get close to doubling from the €128bn [$177bn] figure of last year,” he said.
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