European banks improve in first quarter of 2012. - Since the beginning of this year, European banks have been looking in good shape. The Dow Jones Stoxx index regained 12.66% in the first quarter of the year, following losses of 32.48% last year, due to the worsening situation in the Eurozone debt crisis. Restructuring measures adopted by the European banks in 2011 are expected to enable them to resist the ongoing crisis. In France, the Greek crisis led to a debt overhang of more than €13 billion, the repercussions of which still remain. In the front line, the Franco-Belgian bank Dexia, went belly up. Despite the overall situation, BNP Paribas has managed to make the largest profits in the sector (€6.1 billion). Crédit Agricole was affected through its local subsidiary Emporiki. Apart from Dexia and despite Greece, major French banks managed to make a total net profit of more than €14 billion. They have all begun plans to reduce their exposure to sovereign debt risk and their dollar-based business ventures. They all announced job losses (6,400 jobs lost worldwide). In Italy, the six major banks suffered more than €27 billion in total losses in 2011. These losses are mainly due to the massive depreciation of assets, to the tune of €25 billion, rather than bad debts, which fell overall compared to debt in 2010. Less obvious than the others stock markets in 2011, Spanish banks, however, at the beginning of the year, appeared to be less well positioned. Following the 2011 tax year, marked by the forced restructuring of local savings banks, Spain has been faced with a seriously worsened economic situation, aggravated by the bursting of the real estate bubble. The consolidation of the banking sector is going full throttle, as witnessed by the buy-out of Banca Civica by Caixa Bank. In the United Kingdom, Barclay's and HSBC are financially robust with total profits of more than €17 billion. The Royal Bank of Scotland and Lloyds Banking Group, however, nationalised in 2008, appear to be in poor condition, with total losses of €5.7 billion in 2011. (IL/transl.fl)