Animals evolve in severe environments, so do European banks. Better-than-expected second-quarter results showed France’s BNP Paribas and Switzerland’s Credit Suisse adapting to harsh conditions. Their share prices edged higher. The sector remains far from fighting fit.
European bankers blame parched profitability on ultra-low interest rates, which have eroded margins. Weak economies have restricted growth. Regulators have required extra layers of capital fat.
