Photo: Gerry MooneyTen years on from the financial crisis, bailed-out countries’ banks are once more back in the red thanks to Covid. According to the European Central Bank’s latest financial stability review, most EU banks showed a positive return on equity (ROE) in 2020 except those in Ireland, Cyprus, Greece, Italy, Portugal and Spain. Overall, euro area banks’ ROE fell from 5.3pc in 2019 to 1.3pc in 2020. Irish banks’ ROE was -6.6pc, as was the case in Greece, while in Portugal, Spain and Cyprus it ranged from -3pc to just over -4pc last year. The ECB report says most bailed-out countries, including Cyprus, Greece, Italy and Portugal, managed to reduce their non-performing loan ratio – loans in arrears of more than 90 days – during the pandemic.

Source: Irish Independent May 20, 2021 01:30 UTC