1505 GMT - European banks continue to exceed expectations as the third-quarter earnings season unfolds, and there is no fright in sight despite some investors' concerns about credit quality, Keefe, Bruyette & Woods analysts say in a research note. Strong net interest income performances are driving better-than-expected revenue, while costs and provisions come in lower than anticipated, the analysts say. Moreover, banks' reassuring comments about asset quality should abate some investors' concerns on the topic, they add. "We believe the sector will continue to demonstrate earnings resilience and robust credit quality; we reiterate our overweight stance," KBW says. KBW says its top picks are Bank of Ireland, Erste Group, Intesa Sanpaolo, KBC Group, and NatWest. The Stoxx Europe 600 Banks index falls 0.3%, but is up 3.1% this week. (adria.calatayud@wsj.com)
(END) Dow Jones Newswires
October 31, 2025 11:05 ET (15:05 GMT)
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