European banks set to report strong second-quarter earnings, with some concerns about profit sustainability

From Investing.com: 2024-07-22 01:17:02

Europe’s biggest banks are set to report on their second-quarter earnings, with focus on interest rates and political drama impact. European Central Bank expected to cut rates, but bank earnings remain strong. U.S. banks’ experience signals no tolerance for NII disappointment. Euro zone’s top lenders to report this week, with high expectations for profitability despite concerns. Major banks in Spain, France, Germany, and Italy to release reports this week.

Lloyds Banking Group kicks off UK bank earnings on Thursday, followed by NatWest, Barclays, and HSBC. Spain’s Bankinter reports strong lending income in the second quarter, with an increased 2024 NII outlook. Analysts predict solid profitability for European banks, despite concerns about profit sustainability. European bank shares up 20% this year, though concerns remain about profitability and sustainability.

French banks faced a decline in June after political turmoil from President Macron’s snap parliamentary elections. Investor concerns about a less market-friendly government in Paris linger. European banks with investment banking arms expected to see a strong quarter with rising investment banking activity. Deutsche Bank forecast to report a second-quarter loss, breaking 15 consecutive quarters of profitability.



Read more at Investing.com: European banks’ earnings in spotlight after big share price gains By Reuters