Consulting firm McKinsey & Co expects in a report that most of the world's banks will face another 4 years of declining profits as a result of the Covid-19 pandemic.
According to Arabiyanet, the company said that by 2024, the pandemic will require $ 2.7 trillion in loan allocations for expenditures and $ 3.7 trillion in revenue will be permanently lost, due to economic challenges And the continued low interest rates.
the company said that globally, return on equity, an important measure of profitability, is also expected to decline to 1.5 percent in 2021 from 8.9 percent in 2019.
She added that most institutions will not regain profitability in 2019 for five years unless they improve their productivity and management of capital, and that merger may be a solution for some of them.
said Kosik Rajgopal, one of the report's authors, that there is an urgent need for banks to increase their productivity.
