French banks risk falling behind European rivals and losing out on windfall profits from rising interest rates due to rules which hamstring their ability to reprice loans.
After a decade of depressed returns, rising inflation and ECB rate hikes have radically changed the fortunes of most of Europe’s biggest banks, driving up margins and lending income.
With the exception of Credit Suisse, bumper profits are expected of Europe’s top banks when they report fourth-quarter results in the coming weeks. Italy’s UniCredit and Switzerland’s UBS kick off the season on Tuesday.
