Banks around the world are in profit for the first since the financial crisis—except for in Europe, according to a new report by Boston Consulting Group (BCG).
Financial institutions posted an average economic profit (EP)—which differs from accounting profit in that it also deducts opportunity cost —of 18 billion euros ($22 billion) last year, with banks in North America, the Middle East, Africa, Asia-Pacific and South America all in the black, the global management consultancy firm said on Tuesday.
According to BCG, 2013 was the first year since 2007 that banks across the world had regained overall profitability on average. Success stories in 2013 included Goldman Sachs, which reported net earnings of $8.0 billion—up from $7.5 billion in 2011. Overall, the average was dragged down by banks in Europe, however, which continued to post losses.
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