European Banks' 2025 Seen as a Crucial Year -- Market Talk

Dow Jones

Jan 06, 2025

1042 GMT - European banks' profitability will hold up better than feared thanks to the return of loan growth and a slightly upward sloping yield curve, which will be powerful counters to headwinds from falling interest rates, Keefe, Bruyette & Woods say in a research report. "2025 will therefore be a crucial year for the banks to prove the doubters wrong," they write. The market still has a high level of scepticism on the profitability of the continent's lenders--which have outperformed every other European sector over the past five years--as shown by the failure to rerate in price-to-earnings terms. KBW analysts advise investors to stick with rate-sensitive names--which were 2024's winners--as they will still generate high income levels given the hedging strategies they have in place. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

January 06, 2025 05:42 ET (10:42 GMT)

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The market still has a high level of scepticism on the profitability of the continent's lenders--which have outperformed every other European sector over the past five years--as shown by the failure to rerate in price-to-earnings terms. KBW analysts advise investors to stick with rate-sensitive names--which were 2024's winners--as they will still generate high income levels given the hedging strategies they have in place. 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The market still has a high level of scepticism on the profitability of the continent's lenders--which have outperformed every other European sector over the past five years--as shown by the failure to rerate in price-to-earnings terms. KBW analysts advise investors to stick with rate-sensitive names--which were 2024's winners--as they will still generate high income levels given the hedging strategies they have in place. (elena.vardon@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  January 06, 2025 05:42 ET (10:42 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SAN","symbol_name":"桑坦德银行","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2501281111","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2501281111","pubTimestamp":1736160120,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"1042 GMT - European banks' profitability will hold up better than feared thanks to the return of loan growth and a slightly upward sloping yield curve, which will be powerful counters to headwinds from falling interest rates, Keefe, Bruyette & Woods say in a research report. \"2025 will therefore be a crucial year for the banks to prove the doubters wrong,\" they write. The market still has a high level of scepticism on the profitability of the continent's lenders--which have outperformed every other European sector over the past five years--as shown by the failure to rerate in price-to-earnings terms. KBW analysts advise investors to stick with rate-sensitive names--which were 2024's winners--as they will still generate high income levels given the hedging strategies they have in place. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"SAN":"桑坦德银行","ISNPY":"Intesa Sanpaolo S.p.A.","BK4207":"综合性银行","CAIXY":"Caixabank SA","BBVA":"西班牙外换银行","BK4521":"英国银行股"},"translate_title":"欧洲银行2025年被视为关键的一年——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BBVA":0.9,"ISNPY":0.9,"CAIXY":0.9,"SAN":0.9},"content_text":"1042 GMT - European banks' profitability will hold up better than feared thanks to the return of loan growth and a slightly upward sloping yield curve, which will be powerful counters to headwinds from falling interest rates, Keefe, Bruyette & Woods say in a research report. \"2025 will therefore be a crucial year for the banks to prove the doubters wrong,\" they write. The market still has a high level of scepticism on the profitability of the continent's lenders--which have outperformed every other European sector over the past five years--as shown by the failure to rerate in price-to-earnings terms. KBW analysts advise investors to stick with rate-sensitive names--which were 2024's winners--as they will still generate high income levels given the hedging strategies they have in place. (elena.vardon@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  January 06, 2025 05:42 ET (10:42 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}