Finance

European-listed banks lost $372.9bln in market value since Jan 1, 2020

European-listed banks lost $372.9bln in market value since Jan 1, 2020
Friday, 26 June 2020 15:09

The 187 banks listed on European financial markets lost $372.9 billion in market value since the beginning of 2020, according to information reported by Capital IQ. HSBC Banking Corporation, the most highly valued bank on the stock market in Europe, bears the heaviest loss ($52.2 billion). Banco Santander and Lloyds Banking Group closed the top 3.

This drop, in market value, only reflects the strong negative sentiment of investors for the securities of these financial companies in the context of the global economic shock. European banks are among the first victims of the current coronavirus pandemic. The disruption of activities in almost all countries in the world has led many sectors or household customers of banks to shut down or reduce their activities. And this has made it difficult to repay loans.

In this context, the interest income on the banking loans has come under pressure. The pandemic also affected another important aspect of bank activities, which is investments. According to data provided by Refinitiv, this financial sector generated $2.2 billion in revenues in the European market in Q1 2020, down 10% from Q1 2019. This is the lowest investment banking revenue for a first quarter in the last 4 years.

Over the last 30 days, the value of the majority of banks listed on European markets has risen. Recent stimulus decisions by the Central Bank and the European Commission have reassured investors, including banks.

Gradually, governments are considering reopening their economies. But the European banking sector will have to remain under surveillance. Corporate and public sector debt has reached record levels, and governments and central banks are running out of options in the event of a shock from a second wave of coronavirus.

Idriss Linge

On the same topic
Letshego Africa Holdings, a Botswana-based financial services group listed on the Botswana Stock Exchange, signed agreements with Axian Digital...
First RMBS listing on BRVM backed by NSIA Banque Côte d’Ivoire CFA10 billion securitization aims to expand housing finance Move seeks to deepen...
Holmarcom to acquire BNP Paribas 67% stake in BMCI Deal pending approvals, expected to close Q4 2026 Move strengthens Holmarcom...
Strategy follows mining corridors and regional trade flows Expansion backed by record profits and pan-African growth plans Kenya's Equity...
Most Read
01

Mediterrania Capital bought Australian Amcor's Moroccan packaging unit Enko Capital took ov...

Two Other African-focused Private Equity Firms to Snap Up assets shed by Global Majors
02

Enko Capital acquires Servair’s fast-food unit in Côte d’Ivoire, including the Burger King franchi...

Enko Capital Buys Burger King Côte d’Ivoire in Servair Restructuring
03

Standard Chartered arranges $2.33 billion for Tanzania railway project Funding support...

Tanzania Secures $2.33 Billion in Syndicated Financing for Standard Gauge Railway
04

Central bank to release $1 billion in cash to curb black market demand Move aims to ease inf...

Libya Opens Dollar Sales to Ease Pressure on Dinar and Prices
05

From eastern Chad, where measles and meningitis are spreading through overcrowded refugee camps, to ...

Weekly Health Update | Vaccination Gains Advance in Africa; Antimalarial Resistance Threatens Progress
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.