1335 GMT - Not all southern European banks will be able to sustain profit-driving growth this year, analysts at Bank of America write. Spanish and Italian banks face fierce competition and are largely underinvested in IT, with the sector's outlay lagging far behind U.S. peers, the analysts write. The sector could get a boost from expected European Central Bank rate hikes, the analysts add. Banco de Sabadell falls 1.5%, though CaixaBank gains 0.9%. In Italy, Poste Italiane and Banca Popolare di Sondrio fall 1.3% and 0.8%, while Banca Monte dei Paschi di Siena gains 1%. The Siena-based bank is best placed to benefit from Italian market consolidation, the analysts write. (josephmichael.stonor@wsj.com)

(END) Dow Jones Newswires

January 09, 2026 08:43 ET (13:43 GMT)

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