Apartment buildings are backdropped by skyscrapers of banks at Canary Wharf in London. Photo: Reuters/Reinhard Krause

As the Brexit discussions get underway, Patrick Jenkins at the Financial Times, shines a spotlight away from London, to the EU ex-UK. Is banking in Europe even profitable, or will British banks happily move their capital to New York and elsewhere?

“A few days ago the chief executive of one global bank said privately that his business in Europe was so weak relative to the rest of the world that by rights it would be shrunk dramatically or closed down altogether. He estimated that while group return on equity would typically be in the 10-15 per cent range, it is dragged down by a sub-5 per cent figure in the group’s European arm,” writes Jenkins.