Netherlands Banks Incur Loss On Payments Services

The Nederlandse Vereniging van Banken (NVB) (Netherlands Bankers' Association) and De Nederlandsche Bank (DNB) have announced results of a McKinsey study they commissioned to examine the revenues and costs incurred by banks in that country in providing payments services. A "EUR 23 million loss is the difference between total gross income of EUR 3,996 million and total expenses of EUR 4,019 million. The banks incur losses on nearly all payment instruments. 90% of total expenses is accounted for by checking accounts (EUR 1,215 million), cash (EUR 779 million) and transfers (EUR 329 million). This negative result is compensated for almost entirely by income from balances on retail and corporate accounts." A copy of the study is available for download.