Summary

• Many of Europe's largest banks raised loan loss provisions for risks related to the war in the Middle East during the first quarter, citing uncertainty over the impact and duration of the conflict.
• While the direct impact of the war on European banks has been limited so far, lenders set aside additional reserves mainly due to updated macroeconomic scenarios and weightings.
• Both Barclays and HSBC booked private credit portfolio-related loan loss charges in the first quarter that exceeded Middle East-driven provisions, pushing up the overall cost of risk.

Many of Europe's largest banks raised loan loss provisions for risks related to the war in the Middle East during the first quarter, citing uncertainty over the impact and duration of the conflict.

European

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