## Figure 1.23. European Bank Profitability, 2016

## Source details

**Canonical URL:** [Figure 1.23. European Bank Profitability, 2016](https://www.imf.org/-/media/files/publications/gfsr/2017/april/chapter-1/figure1-23-v2.pdf)

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### 1. Sample European Banks by ROE Thresholds (Percent of sample, by assets)
- Sample size: 172 (of the largest European banks).
- Percent of sample assets shown by groupings labeled: Total, Domestic, Global, Europe-focused.
- ROE classification thresholds:
  - Healthy (ROE ≥ 10%)
  - Challenged (8% ≤ ROE < 10%)
  - Weak (ROE < 8%)

### 2. Sample Domestic Bank ROE and ROA
- Analysis restricted to the 143 domestic banks in the sample.
- Countries shown are the 15 with largest bank assets in the sample, excluding Greece. Data labels use ISO country codes.
- Example country-specific performance callout:
  - PRT (ROA: –90 bps, ROE: –13 percent)

### 3. Sample Domestic Bank ROA (Percent of assets)
- Returns on assets (ROA) are presented for domestic banks across the selected countries.
- Variation in ROA within countries is reported as standard deviation (figure indicates differences across countries but exact per-country standard deviations are displayed in the figure).

### 4. Sample Domestic Bank Preprovision Profit, Revenues and Costs (Percent of assets)
- Revenue, operating costs, and preprovision operating profit are reported as percent of assets.
- Revenue axis shown from 0.0 to 3.0; operating costs axis shown from 0.0 to 2.0 (ticks: 0.00, 0.5, 1.0, 1.5, 2.0).
- Preprovision operating profit categories indicated: High profit, Mid profit, Low profit, Zero preprovision operating profit (revenues equal costs).
- Components presented: Net interest income, Noninterest income, Operating cost, Provisions, ROA.

### 5. Sample Domestic Banks by ROE Thresholds and Institution Type (Percent of sample, by assets)
- Institution types indicated include: Commercial banks; Savings, cooperative, development, policy, and state-owned banks.
- Percent of sample assets and number of firms shown (figure labels include numbers such as: 20, 9, 143, 31, 29, 40, 19, 8, 18, 15, 67, 29, 7, 32, 14, 63, 75, 53).
- Breakdown highlights variability in profitability across different institution types.

### 6. Sample Domestic Bank ROA within Countries
- Panel shows distribution of ROA within each country (percent of assets), illustrating within-country heterogeneity.
- ROE and ROA axes include granular tick marks (ROA axis ticks include values such as –50, –25, 0, 25, 50, 75, 100, 125; ROE axis ticks include values such as 0.0, 0.5, 1.0, 1.5, 2.0, 2.5, 3.0).

Sources: Bloomberg L.P.; SNL Financial; and IMF staff calculations.
Note: Panel 1 is based on a sample of 172 of the largest European banks. Panels 2 to 6 are based on the 143 domestic banks in the sample. The individual countries in the figure are those with the 15 largest bank assets in the sample, excluding Greece. Conduct costs have been removed. Data labels in the figure use International Organization of Standardization (ISO) country codes. ROA = return on assets; ROE = return on equity.

*Figure 1.23. European Bank Profitability, 2016 — source PDF figure1-23-v2*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2017/april/chapter-1/figure1-23-v2.pdf_