2018-01-29 17:15

Davos Elite Eyes M&A Across Europe‘s Struggling Banking Industry

REUTERS/Dado Ruvic
REUTERS/Dado Ruvic
The rationale for merging some of Europe‘s biggest lenders is compelling. 

That‘s the view of many financial executives who met at the World Economic Forum in Davos, Switzerland, last week. A decade after the financial crisis, some of the region‘s biggest lenders are facing declining revenue as interest rates linger near record lows, while legal bills and capital demands have eroded profit.

Combinations of consumer-banking operations could help pare costs and fend off competition from fintech startups. And firms that are too exposed to volatile businesses, such as trading that consumes more capital, could bolster returns by diversifying and adding steadier and higher-margin activities.

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