Daily Management Review

‘So Far No Sign Of Financial Stability Risks’


10/27/2016


Third quarter report of European Bank show positive results for some.



Reports on Reuter show that in an environment set by “low interest rate”, the bank of Europe began to report the results of “third quarter”, whereby Laura Frykberg informed that “Lloyds Banking Group” came as a surprise to many, while Santander of Spain had to depend on Brazil for making up for its “weakness”.
 
However, Lloyds’s profit was ‘better than expected’ as it made “1.9 billion pounds” within its third quarter. Similar scenarios of the figures had presented themselves around a year ago when “the political landscape was much clearer”. The Head of Research at Wilson King Investment Management, Richard Hunter, stated:
“There are a couple of things that Lloyds need to keep their eye on of course, we are yet to see what the implications of a hard Brexit might be. But on other hand they're paying over four percent in terms of a dividend yield, which is obviously attractive given the interest rate backdrop.”
 
Meanwhile, the Head of the European Central Bank, seem to be the closest to this subject. The “loose monetary policy” set by Mario Draghi has been “under fire” as it introduced a “culture of excessive debt”. In Draghi’s words:
“We are perfectly aware, that low interest rates for a long time with plenty of liquidity are a fertile ground for financial stability risks. We watch this risk very carefully. We have so far no sign of financial stability risks.”
 
Nevertheless, the “state-run Bankia” of Spain may not show consent in this case for it points finger to “low rates” for the drop of twelve percent in its third quarter’s profit as compared to its previous year’s respective figures.
 
The Co-Founder of Seven Investment Management, Justin Urquhart Stewart, said:
“The economic climate and the overall structure of European banks is still a disaster. These are banks which need overall structure and surgery.”
 
Moreover, Santander’s Europe weakness seems to have been made up with the improvement shown in the results of third quarter performance in Brazil. In fact, it also reassigned prices to “loans” besides raising fees. The net profit beat estimates by one percent, resulting in a high share value of six month.
 
 
 
 
 
 
 
References:
http://www.reuters.com/







Science & Technology

Smartphone makers will pay for pre-installing Google apps‍

Five loudest data leaks

Airbus announces Moon exploration competition

Former Head Of Google China Thinks Funding In AI Should Be Doubled By US

Germany Introduces The First Ever Train To Run On 100% Hydrogen

Germany Plans On Cyber Security Research To End Reliance On U.S. Tech

Fuchsia will kill Android by 2023: Top 5 facts about the new OS

New Study Finds Goats Interact More With Happy People

More than 32 thousand "smart" houses under threat of hacker attack

Internet addiction and children: Global plague

World Politics

World & Politics

Cyprus Cobalt Air stopped flights

Transparency International: Europe should stop selling citizenships

Turkey: We are not going to discuss borrowing from IMF anymore

Trump in your mobile phone: US is going to test Presidential Alert system

European automakers warn of consequences of tight emission controls

IATA: EU-UK flights can be cancelled due to Brexit disagreements

Ex-Brexit Minister Said A ‘Reset’ Is Needed For Brexit Talks

10 countries with the best healthcare systems