Barclays, Jefferies upbeat on Spanish bank fundamentals into Q3 results

Unicaja Banco SA

20/10/2026 10:56

    ** Barclays notes that across
Spanish banking space "fundamentals
remain supportive, but higher rates
bring both earnings upside and new
risks" into the third-quarter results
    ** It says higher rates could
offer meaningful benefits in 2028 as
asset repricing gathers pace, though
factors such as slowing deposit
growth and intense mortgage pricing
competition act as offsets
    ** Barclays upgrades Sabadell,
citing greater confidence in its
ability to deliver net interest
income and cost targets following the
renegotiated Amundi  AMUN.PA 
agreement, higher rates and
efficiency measures announced to date
    ** Meanwhile, Jefferies notes
that "fundamentals remain firmly
intact" with resilient asset quality
and volume growth acting as a bright
spot 
    ** Jefferies adds that the
September yield shock in the bond
market has led to a material increase
in the sector's cost of equity and
lower valuation multiples

    Rating changes by Jefferies:
 COMPANY      RATING      OLD RATING
 Bankinter    Buy         Hold
  BKT.MC                  
 Santander    Hold        Buy
  SAN.MC                  
    


    (Reporting by Marta Serafinko in
Gdansk)
 ((marta.serafinko@thomsonreuters.com
;))