Austrian Banking Sector: Profitability Below Potential

Businessn.a. ♦ Published: September 14, 2013; 19:33 ♦ (Vindobona)

Not only the high NPL quota in the CESEE region, but also the overcapacity in Austria is a burden for the domestic banking industry.

Austrian Banking Sector: Profitability Below Potential / Picture: © Vindobona.org

S&P reports that the Austrian banking industry faces an increasing pressure on profitability.

Above all, the high volume of non-performing loans in Central, Eastern and Southeastern Europe lowers the profitability. According to S&P, the risks in the CESEE region are relatively unequally distributed. The Czech Republic and Slovakia have a rather stable banking system.…