European banks downplay impact of Russian gas shut-off

If Russia stops the gas this winter, the damage to European banks will be worse than Covid, and Germany will be at the centre of the storm.

Deutsche Bank reported decent second-quarter results on July 27, including an 8% return on tangible common equity partly thanks to higher FIC trading revenues, which helped the German lender to its best first half since 2011.

The stock edged up, but investors were in no mood to celebrate. They want to know what will happen to the German economy if Russia cuts off gas supplies to Europe in retaliation for sanctions and financial and military support for Ukraine.

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