Report: European banks to struggle, may need to cut costs

FRANKFURT, Germany (AP) — European banks are likely to struggle to make profits in months ahead and may need to cut costs, merge or change their business strategies to return to solid health, a report said Tuesday.

In its review of financial stability in the 19-country eurozone, the European Central Bank said the region's banking system had weathered volatility in markets at the start of the year.

Many are also paying fines and legal settlements connected to past misconduct over sales of risky financial products or rigging financial benchmarks.