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FINANCIALS: Financials Results: Four Beats, One In Line

FINANCIALS

Another busy results day with four beats and only really SocGen more in line. Conf calls litter the morning.

  • BCP (BCPPL: Baa2/BBB- pos) beat on positive revenues and good loan losses though M&A speculation likely to remain key spread driver
  • Barclays (BACR: Baa1/BBB+/A) results show good loan losses but a small CET1 miss, a new equity buyback and the spread tightening of the last month likely mean performance capped in the near term
  • SocGen (SOCGEN: Baa2 neg/BBB/A- pos) show a cost overrun which negates the small revenue beat. Credit stats looked solid but there’s not enough here to move spreads, in our view
  • ING (INTNED: Baa1 pos/A-/A+) show a pre-tax beat, upgraded guidance and good loan losses – good news but expectations were already reasonably high after good 1Q24 results.
  • Credit Agricole (ACAFP: A3/A-/A+) show a 13% pre-tax beat on both revenues and loan losses. Spreads have been marginal underperformers, so could go better today.

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