European Banks' Returns Beat U.S. Banks, Magnificent 7 Stocks -- Market Talk

Dow Jones

Feb 18, 2025

1112 GMT - European banks' total returns have outstripped that of U.S. banks and even the "Magnificent 7" stocks since the September 2020 low point, Keefe, Bruyette & Woods say in a research note. "The very logical question we are getting now is "how much further can they go?" analysts write. They note that evolution is rarely linear but they see around 30% of upside from here, which will need a lower cost of equity and some belief in a small amount of growth. KBW expects profitability to hold up better than expected thanks to resilient net interest income from structural hedges offsetting lower interest rates, which themselves should boost loan growth. This should lead to a rerating. The STOXX Europe 600 banking subindex has gained 18% in the year to date and 46% on a 12-month basis, according to Refinitiv data. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

February 18, 2025 06:12 ET (11:12 GMT)

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They note that evolution is rarely linear but they see around 30% of upside from here, which will need a lower cost of equity and some belief in a small amount of growth. KBW expects profitability to hold up better than expected thanks to resilient net interest income from structural hedges offsetting lower interest rates, which themselves should boost loan growth. This should lead to a rerating. The STOXX Europe 600 banking subindex has gained 18% in the year to date and 46% on a 12-month basis, according to Refinitiv data. (elena.vardon@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  February 18, 2025 06:12 ET (11:12 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>European Banks' Returns Beat U.S. Banks, Magnificent 7 Stocks -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEuropean Banks' Returns Beat U.S. Banks, Magnificent 7 Stocks -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-02-18 19:12</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     1112 GMT - European banks' total returns have outstripped that of U.S. banks and even the \"Magnificent 7\" stocks since the September 2020 low point, Keefe, Bruyette &amp; Woods say in a research note. \"The very logical question we are getting now is \"how much further can they go?\" analysts write. They note that evolution is rarely linear but they see around 30% of upside from here, which will need a lower cost of equity and some belief in a small amount of growth. KBW expects profitability to hold up better than expected thanks to resilient net interest income from structural hedges offsetting lower interest rates, which themselves should boost loan growth. This should lead to a rerating. The STOXX Europe 600 banking subindex has gained 18% in the year to date and 46% on a 12-month basis, according to Refinitiv data. (elena.vardon@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  February 18, 2025 06:12 ET (11:12 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":"00201","symbol_name":"华大酒店","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2512537241","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2512537241","pubTimestamp":1739877120,"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":"1112 GMT - European banks' total returns have outstripped that of U.S. banks and even the \"Magnificent 7\" stocks since the September 2020 low point, Keefe, Bruyette & Woods say in a research note. \"The very logical question we are getting now is \"how much further can they go?\" analysts write. They note that evolution is rarely linear but they see around 30% of upside from here, which will need a lower cost of equity and some belief in a small amount of growth. KBW expects profitability to hold up better than expected thanks to resilient net interest income from structural hedges offsetting lower interest rates, which themselves should boost loan growth. This should lead to a rerating. The STOXX Europe 600 banking subindex has gained 18% in the year to date and 46% on a 12-month basis, according to Refinitiv data. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"00201":"华大酒店","BK1164":"酒店、度假村与豪华游轮"},"translate_title":"欧洲银行回报率击败美国银行，7只股票表现出色——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00201":1},"content_text":"1112 GMT - European banks' total returns have outstripped that of U.S. banks and even the \"Magnificent 7\" stocks since the September 2020 low point, Keefe, Bruyette & Woods say in a research note. \"The very logical question we are getting now is \"how much further can they go?\" analysts write. They note that evolution is rarely linear but they see around 30% of upside from here, which will need a lower cost of equity and some belief in a small amount of growth. KBW expects profitability to hold up better than expected thanks to resilient net interest income from structural hedges offsetting lower interest rates, which themselves should boost loan growth. This should lead to a rerating. The STOXX Europe 600 banking subindex has gained 18% in the year to date and 46% on a 12-month basis, according to Refinitiv data. (elena.vardon@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  February 18, 2025 06:12 ET (11:12 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"}}}