EuroBanks; Lessons From Results So Far

UK bank reporting starts next week. What have we learnt from peers so far this season… equity payouts are rising, credit quality remaining solid but some revenue disappointments as rates roll over.

• Nordic banks saw little real credit deterioration and have generally lifted payouts to equity holders, however, this region is relatively self-contained, so few laterals.
• Global investment banks showed mixed revenues with FICC broadly flat (credit appeared a weak spot), equities similar (but with positives in structured and prime) and primary showing some re-emergence from the COVID-related gloom.
• Spanish majors both showed relatively good figures with strong capital and positive news on UK asset quality from Santander.
• In “Frenelux”, BNP and ING both disappointed on revenues and capital levels as rate tailwinds abated perhaps more quickly than expected. SocGen and CredAg were closer to in-line.
• The Italian majors both broadly made consensus and improved payouts to equity holders (in common with the Nordics).

Timetable:

16-Feb NatWest (NWG LN)

20-Feb Barclays (BARC LN)

21-Feb HSBC (HSBA LN)

22-Feb Lloyds Banking (LLOY LN)

23-Feb Standard Chartered (STAN LN)