GS remains constructive on European Banks, ups Bank of Ireland, cuts BBVA

Bank Of India

12/04/2024 08:22

** Goldman Sachs believes that the persistence of a "Better
for Longer" backdrop supports a continued constructive stance on
the European Banks sector
    ** The European banking index  .SX7E  has rallied c.20% over
the past two months, outperforming the broader STOXX 600
 .STOXX  by c.15%, more than the annual outperformance delivered
across 2021-2023, GS says
    ** It expects the key focus areas for the sector to be
earnings resilience in a lower rate environment; capital markets
reopening and mid-to-long-term sustainability of capital returns
    ** The broker says it remains constructive on BNP  BNPP.PA ,
Santander  SAN.MC , Deutsche Bank  DBKGn.DE , Intesa San Paolo
 ISP.MI , KBC  KBC.BR , UBS  UBSG.S  and Unicredit  CRDI.MI ,
retaining all with "buy" rating 
    ** GS upgrades Bank of Ireland  BOI.NS  to "buy" but cuts
ING  INGA.AS  and ABN Amro  ABNd.AS  to "neutral", and BBVA
 BBVA.MC  to "sell"
    ** It reiterates "sell" for Societe Generale  SOGN.PA  and
Credit Agricole  CAGR.PA 

 (Reporting by Mathias de Rozario and Joao Manuel Mauricio)
 ((mathias.derozario@thomsonreuters.com))