ECB Announces Decreasing Profitability of 112 Banks

ECB Announces Decreasing Profitability of 112 Banks ECB announced decreasing profitability of 112 banks. These banks are under the direct supervision of the European Central Bank (ECB) in the Eurozone. The European Central Bank (ECB) has announced the financial statistics of the banks under its supervision for the second quarter of 2020. According to the announced data, the return on equity of 112 banks under the direct control of the ECB fell from 6.01 percent to 0.01 percent at the end of the second quarter compared to the previous year, due to the economic deterioration caused by the Coronavirus (Covid-19). It is stated that the value of non-performing loans, which was 501.02 billion euros at the end of the first quarter, increased to 503.25 billion euros at the end of the second quarter, while state guarantees had a positive impact on banks loan performance. Net interest income of banks, which was 67 billion 776 million euros at the end of the first quarter, increased to 133 billion 297 million euros at the end of the second quarter.