ANALYSTS HAD expected a blistering earnings season for European banks, which reported their second-quarter results in late July and early August. And painfully hot it was, with profits melting away as lenders made provisions for future loan losses. On August 3rd hsbc, Europe's largest bank by assets, said that its post-tax profits had fallen by 88% on the year, to $6i7tn. Loss-making lenders included Deutsche Bank in Germany, Santander in Spain and Societe Generate in France. Much like Wall Street titans, albeit on a smaller scale, European lenders with investment-banking arms saw losses tempered by a boost in trading revenue. As the coronavirus spread and markets turned volatile, investors rushed to reposition their portfolios. Many governments and companies took advantage of central-bank support and ultra-low interest rates to issue debt, allowing banks to pocket fat fees, bnp Paribas, France's largest bank, saw trading revenue jump by 154%.
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