Assessing European banks’ Expected Credit Losses amidst persistent economic uncertainty

How has the financial performance of European banks fared amidst economic turbulence in recent years? Global inflation ensuing the war in Ukraine and the aftermath of the Covid-19 crisis have collectively affected the financial services industry, undoubtedly impacting the expected credit losses (ECL) in banks’ financial disclosures.

Over the last few years, we have witnessed unprecedented events on a global scale which have in turn put a strain on the stability of the financial sector. The banking industry has seen impacts on operating profit and loss, as well as ECL coverage ratios and the ventilation of gross credit exposure, among others. This volatility is forcing businesses worldwide to closely monitor and improve their strategy. It is clear that in order to remain resilient, banks must learn the lessons from recent years as they prepare for new challenges in the future.  

Forvis Mazars is committed to sharing analysis from the largest banks across the European continent, enabling you to better understand the impact of recent events on the performance of the wider banking industry. These findings are based on the audited information disclosed in the annual report of participating firms from the financial sector. Discover our full and continually updated selection of reports and insights below.