IMF Says Banks' Profitability Could Be Muted Through 2025

Banks will struggle to maintain their profitability not just through the COVID-19 pandemic, but over the next five years, according to a new report released by the International Monetary Fund.

In its latest installment of the Global Financial Stability Report, the IMF forecast that bank profitability will remain challenged through 2025 across nine advanced economies, including the United States, as those financial institutions may not be able to generate profits above their cost of equity.

Beyond the immediate challenges related to the COVID-19 outbreak, the authors anticipate an extended period of extremely low interest rates that will further drag on banks' margins.

Source Fool.com