0640 GMT - The main impact to French banks' earnings could be from potential taxes amid a challenging fiscal environment, JPMorgan says in a research note after a confidence vote was called for Sept. 8 due to growing pushback to pass next year's budget. It is fair to assume that the tax surcharge could be extended, which would dent the bottom line of France's three listed lenders, analysts write. "Whilst political uncertainty can create some downside risk to growth, we note that there is limited impact on capital from the bond and credit spreads volatility beyond some small drag on lending volumes," they say. The bigger issue is higher cost of equity in the short term. Recent weakness is a buying opportunity for Societe Generale, which has upside and an undemanding valuation, JPM says. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

August 27, 2025 02:40 ET (06:40 GMT)

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