Inflation is expected to reach new record highs (U.S.: 7.9% YoY in Q1 2022, Western Europe: 5.9% YoY in Q2 2022) as prices soar across the board. Supply chain disruptions and increasing energy prices reduced growth expectations already at the beginning of the year but are now becoming a heavy burden on the post-COVID economic recovery. The Russia-Ukraine war has significantly darkened the global economic environment. Rising inflation expectations have also caused medium to long-term interest rates to increase remarkably, shifting the U.S.Economic growth prospects deteriorated in Q1 and inflation is expected to reach new record highs (Western Europe: 5.9% YoY in Q2 22, U.S.: 7.9% YoY in Q1 22).+5.9% YoY expected Western European inflation rate in Q2 Unicredit, for example, as one of the largest foreign banks in Russia, ranking 12th by total assets.Įconomic growth prospects deteriorate and inflation is running hot Among the European low performers of Q1 2022 are in particular banks with significant Russian exposure, mainly from Austria, Italy and France.European banks’ average valuation declined by -0.03x QoQ to 0.63x and U.S. Average P/B ratios showed corresponding corrections. ![]() BRICS banks, dominated by Chinese and Brazilian banks, remained nearly unaffected by the latest market developments and showed a quarterly TSR of +4.7%. banks had a less strong start into the year and lost shareholder value of on average -7.7% QoQ.
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