'Time to turn less bullish?' Exane asks about banks, cutting Bankinter and Lloyds

ING Groep NV

11/12/2025 11:09

** "Is it finally time to turn less bullish?" Exane BNP Paribas asks after five years of outperformance for the European banking sector, downgrading Lloyds LLOY.L and Bankinter BKT.MC to "neutral" from "outperform" after a strong run at both banks

** "We like European banks. They are often still cheaper than international peers, generate healthy returns and offer attractive yields," Exane says

** Still, positioning has changed, and even if growth should accelerate in 2026, this is largely captured in expectations, the brokerage says

** Exane says European banks "no longer offer uniform upside", and after more than four years of being "outright positive" on the sector, the brokerage remains "constructive but more selective"

** Its top picks are still HSBC HSBA.L, Unicredit CRDI.MI, ING INGA.AS, Société Générale SOGN.PA, Bank of Ireland Group BIRG.I and BCP BCP.LS, with the broker saying they are set to generate >16% ROTE in 2027 on average

(Reporting by Javi West Larrañaga)

((javier.west@thomsonreuters.com; +34 918 35 61 12))