Norwegian banks with significant exposure to the offshore sector could face a rise in impairments due to oil industry losses, according to regulator. This would erode their profits as the full impact of the low crude oil market emerges.
BY FRANCES SCHWARTZKOPFF, BLOOMBERG
Norway's financial regulator said that banks exposed to oil-industry losses face a rise in impairments that will erode profits as the full effect of the slump in crude prices runs its course.
Hafnia, Torm, Norden and Scorpio Tankers have seen big profits this year in a strong tanker market, which has been highly affected by Russia’s war in Ukraine. The carriers are now sending record-high dividends out to stakeholders.
Demand on the majority of busy container routes is now at its lowest level in three years, an influential analyst bureau reports, saying volumes may continue to plummet beyond the Chinese New Year in February.