EU banks add overlays as crises evade modelling

Lenders buttress provisions against unpredictable fallout from Russia's invasion of Ukraine

Facing a geopolitical and energy crisis the outcomes of which are near-impossible to model, European lenders applied heavy overlays to loan-loss provisions in the first six months of the year – in much the same vein as when Covid-19 first swept Europe.

Leading the pack was Commerzbank, which in the first half applied a €386 million ($389 million) overlay to provisions to cover “secondary effects” from the Ukraine invasion and the coronavirus pandemic, which could “no longer be attributed to

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