Europe bank profits ‘may drop €32bn’ on Brexit, says Goldman Sachs

Brexit may shave €32bn off European bank earnings through 2018, a 11% decline from what profits would have been without the economic shock, according to Goldman Sachs Group.

UK banks will be hurt the most as the UK vote to leave the EU erases €10bn of potential net income, Goldman Sachs analysts said in a note to clients yesterday.

Banks in the Benelux and Nordic countries will suffer the least, they said. “We forecast a weaker outlook owing to lower volumes, margins and fees,” as well as higher credit risks, the group of analysts, led by Jernej Omahen, said in the note.