...Large Banks Resist Intensifying Pressure Large French banks' revenue remained broadly stable in 1H19 (+0.4% yoy) ow ing to their business diversification, w ith CM AF being the best performer (+6.4% yoy). The low interest- rate environment continued to pressurise traditional banking activities located in the eurozone, w hile capital markets activities suffered from a reduced level of activity and low er margins. In France, banks do not charge negative interest rates on individuals and SMEs, w hich w eighs on net interest income. The sector also committed not to increase fees for individuals in 2019 and to reduce amounts charged to financially vulnerable clients for payment incidents. How ever, the dynamic loan grow th of above 6.5% for the sector allow ed a majority of banks to stabilise their domestic retail and commercial banking revenue. In capital markets, only BNPP w as able to maintain its revenue base in 1H19 among the four banks significantly active in this segment. Insurance and...
