The main banks in Europe indicate caution as the profit of the nefarious perspectives earn the benefit

Of Sinead Cruise and Tommy Regiori Wilkes

European lenders in London (Reuters) -BIG retain ambitious performance goals after the benefits of the first quarter of Bumper this week, but beyond the headline numbers, the bank chiefs contemplate a style of threats for their prospects for future gains.

A world trade war triggered by American rates, the highest in a century, has pushed for some economists to increase the odds of recession, with about 40 companies from around the world that threw or reduce their orientation in the first two weeks of the first quarter results season, demonstrated a reterial analysis.

With only a good number of data points that follow the early impact of the United States President’s Tariff Plan, Donald Trump, most banks have kept firm for shareholders’ payments and profitability goals, but customers already show caution and the provisions against bad loans are going up.

“Although it is too early for the lenders to make strategic changes, the increase in bad loans is a clear warning sign,” said Douglas Grant, CEO of the Financial Financial Services Company Financial Group.

Grant said that slowing down GDP growth, increasing salary costs and geopolitical instability already promoted small businesses to reduce investment, scale growth plans and preserve cash.

European banks have enjoyed record benefits and increasing actions prices over the last two years, and investors have again promoted their actions for several years after dramatic immersion in early April.

Deutsche Bank caused a 39% increase in the benefit of the first quarter Tuesday after the income of the negotiation of its investment bank and the negotiation of currency increased. But the results included a success of a large amount of loans and provisions for the possible impact of rates on customers.

The Barclays of Britain also highlighted intense financial market activity as a driver of higher investment bank income. In UBS, commercial income increased by $ 32% to $ 2.5 billion in three months until March.

“Unpredictable”

Several banks exceeded the expectations of analysts in the first three months of the year, but the appetite of the future risk for risk is becoming increasingly difficult to read.

“There was some activity in response to the great catalyst for the market we saw in early April, but there is more and more uncertainty that it has a price,” said UBS financial director Todd Tuckner.

CEO Sergio Ermotti said that the economic prospects were “especially unpredictable”, with a corporate offer waiting, although it was not yet canceled.

Although he also exceeded the expectations of analysts, HSBC raised the demand for lower loans on Tuesday and an erosion in the quality of credit due to the wider rate.