bancshares have had an awful week so far
here are a few of the worst performers
first up is Commerce Bank it shares hit
a record low on Tuesday after it posted
its interim results they showed its core
equity tier 1 capital ratio was eleven
point five percent at the end of June
higher than last year but down from
twelve percent in March the bank also
captured the broader issue of low
interest rates which are crippling
European lenders in its report it warned
of the interest rate environments and
customer caution in view of the
geopolitical uncertainties it expects
net profit will be lower than for the
previous year next up is unicredit
Italy's only systemically important bank
which has had a punishing start to the
week it fell by more than nine percent
on Monday and it shares were suspended
after losing a further five percent
early on Tuesday morning the falls come
after details of a rescue plan for monte
de paz key which emerged on Friday the
plan involves that bank taking a hit to
the value of its non-performing loans as
part of their sale investors this week
have considered the impact of similar
hits on the mpls of other banks
including unicredit's then we've got
Barclays it shares fell two-point-nine
percent on Tuesday the bank along with
its UK peers was particularly badly hit
as a result of the brexit votes it's
also like everyone else exposed to
pressures from low interest rates today
the shares were further hit by news that
the FCA has extended the PPI deadline to
2019 finally we have credit suisse it
shares fell five point three percent on
Tuesday morning and they've lost half of
their values so far this year in a sign
of the times Credit Suisse along with
Deutsche Bank well next week be drops
from an index of Europe's top 50
companies this week's losses come after
stress test results on friday which
actually showed a more resilient
european banking sector the key point
here is to distinguish between
profitability and solvency European
banks don't look profitable at all so
their share prices have collapsed this
doesn't necessarily imply that the
solvency of the entire European sector
is under threat as it was during
previous crises though it may be exposed
in certain cases such as Italy the
question now is why the low
profitability will eventually seep into
the broader stability of the banking
sector