European banks would see their profits eroded if an escalation of trade tensions with the US leads to souring corporate loans, according to S&P Global Ratings.
Credit Agricole and BPCE of France, Frankfurt-based Commerzbank, Dutch lender Rabobank and Denmark’s DLR Kredit stand to be hit hardest, according to calculations by the credit ratings company. S&P said none of the 91 banks it examined were projected to face an annual loss in its stress test.
The uncertainty over how the US will implement tariffs on trading partners has investors asking how big the hit will be for Europe. Yet …