Eurozone banks are staggering between uncertainty and horror
European banks are using the current earnings season as another example of why you can find better places to invest your money today.
The long-awaited return “to prominence” after last year now looks like we will have to wait at least a few more months, as the slow vaccination process postpones the reopening of the eurozone economy.
Shares of Unicredit weakened by 2.5% on the Milan Stock Exchange during Thursday morning and are similarly performing during Friday’s trading, when the share price fell to 8,222. Nevertheless, since the beginning of this year, the shares of this bank have gained more than 11%. The wider growth of Italian shares after the nomination of former European Central Bank President Mario Draghi as Prime Minister contributed a lot to this. In 2021, the management expects Unicredit. that the bank’s core profit will more than double to 3 billion euros.
It looks different today in Germany, where the depressing torturous death of Commerzbank (DE: CBKG) is dragging on. Shares of Commerzbank lost 7.85% in the last week, after the bank confirmed a loss of 2.7 billion euros due to its third major restructuring wave in five years. The bank’s latest plan envisages the elimination of 10,000 jobs and the closure of almost half of its branches in Germany. However, the country’s strict labor laws mean that the process will last until 2023.