Global banks hit hard by global economic slowdown

Описание: 글로벌 은행들 실적 추락…경기악화ㆍ저금리ㆍ유가하락 영향
Global banks haven't been doing so well in the face of weak global growth and falling commodity prices.
With global economic conditions far from a recovery,... their profits are hanging on the line.
Kim Min-ji has more.
In a reflection of the slow global economy,... banks in Europe are finding it harder and harder to make a profit.
Standard Chartered posted its first annual loss in 26 years... on the back of restructuring costs and faltering commodity prices.
The bank's pretax loss stood at 1-point-5 billion U.S. dollars,... missing analysts' projection of 1-point-4 billion.
It wasn't much different for HSBC.
The bank posted a loss of 1-point-3 billion dollars in the fourth quarter of last year,... which was in stark contrast to the profit of more than 500 million it recorded in the same period in 2014.

But, in what could be a ray of light,... banks in the U.S. are faring relatively well.
According to the U.S. Federal Deposit Insurance Corporation,... nearly 62-hundred commercial banks in the States posted a combined net profit of 40-point-8 billion U.S. dollars,... up almost 12 percent from a year ago.

"The U.S. is seeing a turnaround in its economy,... but in Europe, even though countries are undertaking stimulus measures,... many global banks are going through restructuring. This can differ by bank, but the ones with greater exposure to emerging markets are being hit."

On top of that, with many central banks adopting negative interest rates,... experts aren't predicting a rosy outlook,... as the subzero rates will lower the net interest margin,... which in turn will pull down banks' operating profits.
Kim Min-ji, Arirang News.


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