Reuters - Video

EDITION: U.S. | U.K. | IN

Top News

Breakingviews: Europe's banks looking pretty, so far...

Tuesday, May 07, 2013 - 04:24

May 7 - A strong first quarter performance from Europe’s banks masks deeper strategic differences between them, says Reuters Breakingviews.

▲ Hide Transcript

View Transcript

The Sunday at cannot -- impression that clouds remain over the years and banking sector this morning. Which is breaking music and making sense of the results more cost cuts that some -- -- Q1 profits -- And the other end of the spectrum HSBC has doubled -- Q1 profits while breaking these emea to test Chris Hughes is in the hot seat for us today. To a -- story -- mixed bag it's also with them so -- Let's cut even more costs. Is this the. -- -- -- Well it's misery for concern is finding that get more efficiencies across the board. Choir -- the investment bank. We force Paris and that's what the result of this but clearly it's far more -- -- flat and at the end and needs to because. It's still making other corporate success. Trading -- well below. That -- Friday so it doesn't need to do something but it's that surprising that they have been if it's far more to do this it has all the same welcome that they think term. Enough -- -- -- in time taking -- this costly turner actually. Achieve cost of equity in -- a return on equity. In the results that -- be cynical sort to -- -- my aunt and speak it equity they once every ten. Equity of 10% by the end of twenty -- fifteen not just run some numbers just online. And they are any -- one point six is this game interesting. Well it's from a. Be a bit higher than than one point six this year the tell us for a few funnies. That for -- in making actually hardly. Single digit returns that rule. Possible. Great. It I think -- realistically can hit double digits. Whether that's enough funds all right group question. The prospect is. It is the -- -- them. The global position with a particular aspect corporation but I think they can get but whether that's really an. Hard enough returns. For -- -- invest as -- -- question. HSBC news is they've really benefited from restructuring and streamlining is while protect half pretax profits up losses from -- sent down I mean this but I can do no wrong this as a breaking news story -- -- Well I can do -- -- -- but they both of us think big and buy votes they -- sold it. In HSBC is is moving along pretty well. As you say -- had a big restructuring program. On the seniors to all of which is ticking along nicely -- if you step back and look at all the parties you can say that. Fluently on average take in the average European Bank. The first quarter that was pretty good operationally. Especially in investment banking it's -- that most people quite surprised by. How well -- fit but. -- Operational progress than in the for -- courts mosques. Very different strategic positions and capital positions that you reference that for example but it's about how to very good she -- operationally. They used perhaps to remedy a problem they have on a couple of placed. Maybe three billion euros to have access to get that tropical races so. UBS by contrast already ST pretty well capitalized again -- do Q1. Says performed pretty well on the part of it messes things going on this instruct his seems to be booking. I'm yet then there are new questions raised about the direction they're going about one of their investors. Might think. Two. Raised the question is whether they should let's do a full breakup say it all the banks they cut quite a good quarter. That that actually plays -- very different. Stories we'll buy it -- -- basis about the structure tropical. -- potentially still quite a mix backing foolish. Thanks very much -- I was breaking he's Christie's request -- look at European banks. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I'm managing all and this is voices.

Breakingviews: Europe's banks looking pretty, so far...

Tuesday, May 07, 2013 - 04:24

Most Popular »

Investing 201 »

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

The better bond funds The better bond funds

Wed, Aug 07, 2013 - (2:40)

Best bargain in 40 years? European stocks Best bargain in 40 years? European stocks

Thu, Aug 01, 2013 - (2:24)

Invest like an activist Invest like an activist

Fri, Jul 26, 2013 - (2:49)

Money Clip »

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

“Stalking” your dream home - Money Clip “Stalking” your dream home - Money Clip

Wed, Mar 27, 2013 - (2:50)

3 hidden tax deductions - Money Clip 3 hidden tax deductions - Money Clip

Thu, Mar 21, 2013 - (1:33)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)