Citi ups Lloyds, Deutsche Bank on strong revenue outlook

Lloyds Banking

09/04/2026 09:09

** Citi upgrades Britain's Lloyds LLOY.L to "buy" from "neutral" and Germany's Deutsche Bank DBKGn.DE to high-risk "neutral" from "sell" due to a strong revenue outlook for the European banking sector

** "Following recent events in Iran, the forward curve now points to two ECB hikes this year," with higher rates set to support banks' earnings, the broker says

** It says the sector "looks set to derive cost and productivity enhancements via AI adoption" over the next three years

** Banks are generating significant excess capital that can be deployed into share buybacks or M&A, Citi adds

** The brokerage names HSBC HSBA.L, SocGen SOGN.PA and NatWest NWG.L as its banking top picks, while keeping an "overweight" view on the sector

(Reporting by Cian Muenster)

((Cian.muenster@thomsonreuters.com))