European Banks Seen as Attractive as Tail Risks Recede -- Market Talk

Dow Jones

May 21, 2025

1145 GMT - Morgan Stanley raises its view on European banks to attractive from in-line in an update to its risk-reward summaries for the continent's lenders. "We gain conviction that yield steepening will hold and [net interest income] growth will resume in 2026," analysts write, noting that the de-escalation of U.S. and China tensions mean the risks to European growth have receded. Healthy deposit growth from European banks' high savings rate will be better monetized in the future, they estimate. They calculate that earnings per share will grow around 10% in 2026 and 2027 on average, and this isn't priced into current valuations. They upgrade ABN Amro, AIB Group and Bank of Ireland to equalweight from underweight and recently cut Julius Baer and Mediobanca's ratings due to uncertainty on fee income. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

May 21, 2025 07:45 ET (11:45 GMT)

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Healthy deposit growth from European banks' high savings rate will be better monetized in the future, they estimate. They calculate that earnings per share will grow around 10% in 2026 and 2027 on average, and this isn't priced into current valuations. They upgrade ABN Amro, AIB Group and Bank of Ireland to equalweight from underweight and recently cut Julius Baer and Mediobanca's ratings due to uncertainty on fee income. (elena.vardon@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  May 21, 2025 07:45 ET (11:45 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>European Banks Seen as Attractive as Tail Risks Recede -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEuropean Banks Seen as Attractive as Tail Risks Recede -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-05-21 19:45</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     1145 GMT - Morgan Stanley raises its view on European banks to attractive from in-line in an update to its risk-reward summaries for the continent's lenders. \"We gain conviction that yield steepening will hold and [net interest income] growth will resume in 2026,\" analysts write, noting that the de-escalation of U.S. and China tensions mean the risks to European growth have receded. Healthy deposit growth from European banks' high savings rate will be better monetized in the future, they estimate. They calculate that earnings per share will grow around 10% in 2026 and 2027 on average, and this isn't priced into current valuations. They upgrade ABN Amro, AIB Group and Bank of Ireland to equalweight from underweight and recently cut Julius Baer and Mediobanca's ratings due to uncertainty on fee income. (elena.vardon@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  May 21, 2025 07:45 ET (11:45 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0106831901.USD","symbol_name":"贝莱德世界金融基金A2","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2537707987","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2537707987","pubTimestamp":1747827900,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"1145 GMT - Morgan Stanley raises its view on European banks to attractive from in-line in an update to its risk-reward summaries for the continent's lenders. \"We gain conviction that yield steepening will hold and [net interest income] growth will resume in 2026,\" analysts write, noting that the de-escalation of U.S. and China tensions mean the risks to European growth have receded. Healthy deposit growth from European banks' high savings rate will be better monetized in the future, they estimate. They calculate that earnings per share will grow around 10% in 2026 and 2027 on average, and this isn't priced into current valuations. They upgrade ABN Amro, AIB Group and Bank of Ireland to equalweight from underweight and recently cut Julius Baer and Mediobanca's ratings due to uncertainty on fee income. 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Healthy deposit growth from European banks' high savings rate will be better monetized in the future, they estimate. They calculate that earnings per share will grow around 10% in 2026 and 2027 on average, and this isn't priced into current valuations. They upgrade ABN Amro, AIB Group and Bank of Ireland to equalweight from underweight and recently cut Julius Baer and Mediobanca's ratings due to uncertainty on fee income. (elena.vardon@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  May 21, 2025 07:45 ET (11:45 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}