May 7 - A strong first quarter performance from Europe’s banks masks deeper strategic differences between them, says Reuters Breakingviews.
The Sunday at cannot -- impression that clouds remain over the years and banking sector this morning. Which is breaking music and making sense of the results more cost cuts that some -- -- Q1 profits -- And the other end of the spectrum HSBC has doubled -- Q1 profits while breaking these emea to test Chris Hughes is in the hot seat for us today. To a -- story -- mixed bag it's also with them so -- Let's cut even more costs. Is this the. -- -- -- Well it's misery for concern is finding that get more efficiencies across the board. Choir -- the investment bank. We force Paris and that's what the result of this but clearly it's far more -- -- flat and at the end and needs to because. It's still making other corporate success. Trading -- well below. That -- Friday so it doesn't need to do something but it's that surprising that they have been if it's far more to do this it has all the same welcome that they think term. Enough -- -- -- in time taking -- this costly turner actually. Achieve cost of equity in -- a return on equity. In the results that -- be cynical sort to -- -- my aunt and speak it equity they once every ten. Equity of 10% by the end of twenty -- fifteen not just run some numbers just online. And they are any -- one point six is this game interesting. Well it's from a. Be a bit higher than than one point six this year the tell us for a few funnies. That for -- in making actually hardly. Single digit returns that rule. Possible. Great. It I think -- realistically can hit double digits. Whether that's enough funds all right group question. The prospect is. It is the -- -- them. The global position with a particular aspect corporation but I think they can get but whether that's really an. Hard enough returns. For -- -- invest as -- -- question. HSBC news is they've really benefited from restructuring and streamlining is while protect half pretax profits up losses from -- sent down I mean this but I can do no wrong this as a breaking news story -- -- Well I can do -- -- -- but they both of us think big and buy votes they -- sold it. In HSBC is is moving along pretty well. As you say -- had a big restructuring program. On the seniors to all of which is ticking along nicely -- if you step back and look at all the parties you can say that. Fluently on average take in the average European Bank. The first quarter that was pretty good operationally. Especially in investment banking it's -- that most people quite surprised by. How well -- fit but. -- Operational progress than in the for -- courts mosques. Very different strategic positions and capital positions that you reference that for example but it's about how to very good she -- operationally. They used perhaps to remedy a problem they have on a couple of placed. Maybe three billion euros to have access to get that tropical races so. UBS by contrast already ST pretty well capitalized again -- do Q1. Says performed pretty well on the part of it messes things going on this instruct his seems to be booking. I'm yet then there are new questions raised about the direction they're going about one of their investors. Might think. Two. Raised the question is whether they should let's do a full breakup say it all the banks they cut quite a good quarter. That that actually plays -- very different. Stories we'll buy it -- -- basis about the structure tropical. -- potentially still quite a mix backing foolish. Thanks very much -- I was breaking he's Christie's request -- look at European banks. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I'm managing all and this is voices.