European merchant banks are least profitable in the world. - European merchant banks, particularly those in Western Europe are the least profitable in the world, according to a report by the Boston Consulting Group, which surveyed 250 major global players. Around 65% of banking establishments in Western Europe achieved negative profit rates and their positions are further declining in the field of corporate finance, as opposed to 25% of banks in North America and 26% in Asia. These European banks have become less profitable with rates of return on own funds of -1% in 2013, compared to 6% in 2007. This disparity has also become more significant between the best European banks and the least performing banks in the US. The US banks, Goldman Sachs and Morgan Stanley continue to dominate the field with maximum yields of 29%, even though their profits also fell, as was the case in Asia too. (Isabelle Lamberty)