European banking: set to shrug off slow revenue growth

Sep 13 13:09 2017 Print This Article

European banks have frequently been in the headlines of the financial media this year. We have seen bank bailouts in Italy, mergers and acquisitions in Spain, large volumes of primary bank issuance as governments sold their stakes and the sector has remained a proxy for market sentiment on future European Central Bank (ECB) rate policy.

The wider European financial sector outperformed the MSCI Europe ex-UK index by 4% in 2017 through the first week in August, but has underperformed the index over the last few weeks.

In my view, the main reason for this recent underperformance is the sluggish state of European banks’ revenue lines. The European banks second quarter reporting season, which came into full swing in mid-August, was once again nominally strong. This followed five quarters of gradual improvements delivering better than-expected bottom-line income, contributing to stronger capital positions.

Read More

About Article Author

Investors Corner

BNP Paribas Investment Partners is the asset management arm of BNP Paribas, one of the largest and best-rated banks in the world. They are a global investment solutions provider, offering investors high-quality investment products and services for both mainstream established asset classes, thematic investing and specific regional financial assets in developed and emerging markets across the globe. The aim of this blog is to provide a forum for investment professionals from across the spectrum of BNP Paribas Investment Partners’ teams to share their analyses or wrestle with the strategic themes and issues confronting us as asset managers.

Related Items

September 25, 2017

HIMIPref™ Preferred IndicesThese values reflect the December 2008 revision of the HIMIPref™ IndicesValues are provisional and are finalized monthly Index MeanCurrentYield(at bid) MedianYTW MedianAverageTradingValue MedianMod Dur(YTW) Issues Day’s Perf. Index Value Ratchet 0.00 % 0.00 % ...

LBS.PR.A to Get Bigger

Brompton Group has announced (although not yet on their website because they’re … um, well, I’ve sent an eMail to my friend ChrisC): Life & Banc Split Corp. (the “Company”) (TSX:LBS)(TSX:LBS.PR.A)is pleased to announce it is undertaking an overnight treasury offering of class A and prefer ...

Tech Talk for Tuesday September 26th 2017

  Observations Russell 2000 Index reaches an all-time high. Energy stocks on both sides of the border, led by oil service stocks were the strongest sector. A move by WTI Crude Oil above $52.00 per barrel also helped the sector. S&P Technology Index led the U.S. equity market on the downside, br ...

September Lat Am crude imports fall on lower Venezuelan shipments: In the LOOP

The Louisiana Offshore Oil Port has seen a month-on-month drop in heavy Latin American crude imports, impacted by high regional prices and falling Venezuelan crude production. Month on month, LOOP has imported about 355,740 fewer barrels so far in September than it did in August, according to data ...

USD/CAD Canadian Dollar Lower Despite Surge in Oil Prices

The Canadian dollar depreciated on Monday hit by rising risk aversion as geopolitical events around the world dominated headlines. The German elections over the weekend showed that not even the largest member of the European Union is immune to the rise of eurozone opposition within its borders. The ...

Is Bitcoin a Commodity? - Keith Weiner

September 25, 2017 Carl Menger, father of the Austrian School of Economics, showed the world that money is not the product of the state. He did not mean that government is intrinsically incapable of decreeing something to be money while other groups, organized for different purposes, could do it. H ...

Ringgit a touch weaker but not ruffled post FOMC

By Bernama – September 21, 2017 @ 9:50am KUALA LUMPUR: The ringgit opened lower against the US dollar today as the greenback advanced after the US Federal Reserve System (Fed) left its interest rate unchanged at its meeting yesterday. At 9am, the local unit was quoted at 4.1965/2005 against ...

GBP/USD – Pound Jumps Above 1.34 as BoE Hints at Rate Hike

The British pound has surged in the Thursday session. In North American trade, GBP/USD is trading at 1.3393, up 1.40% on the day. On the release front, the Bank of England held the benchmark rate at 0.25%, but hinted at a rate hike before the end of the year. In the U.S., CPI and Core CPI both im ...