0940 GMT - The thesis that loan growth and the shape of the yield curve would be key for European banks' this year is now playing out thanks to geopolitics, Keefe, Bruyette & Woods says in a research note. "We believe the market is only at the beginning of comprehending what an upward sloping yield curve may mean for banks earnings (positive) and is still not yet attributing any real value to terminal growth in its valuation (also positive)," analysts write. Banks' earnings are likely to keep on moving higher and the rerating still has more to go, they note. The rate-sensitive names are the best way to play the steepening of the curve as net interest margins should beat expectations and a drastic fall was already assumed. (elena.vardon@wsj.com)
(END) Dow Jones Newswires
March 24, 2025 05:40 ET (09:40 GMT)
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