European Banks Likely to Keep Moving Higher as Yield Curve Steepens -- Market Talk

Dow Jones03-24

0940 GMT - The thesis that loan growth and the shape of the yield curve would be key for European banks' this year is now playing out thanks to geopolitics, Keefe, Bruyette & Woods says in a research note. "We believe the market is only at the beginning of comprehending what an upward sloping yield curve may mean for banks earnings (positive) and is still not yet attributing any real value to terminal growth in its valuation (also positive)," analysts write. Banks' earnings are likely to keep on moving higher and the rerating still has more to go, they note. The rate-sensitive names are the best way to play the steepening of the curve as net interest margins should beat expectations and a drastic fall was already assumed. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

March 24, 2025 05:40 ET (09:40 GMT)

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Banks' earnings are likely to keep on moving higher and the rerating still has more to go, they note. The rate-sensitive names are the best way to play the steepening of the curve as net interest margins should beat expectations and a drastic fall was already assumed. 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Banks' earnings are likely to keep on moving higher and the rerating still has more to go, they note. The rate-sensitive names are the best way to play the steepening of the curve as net interest margins should beat expectations and a drastic fall was already assumed. (elena.vardon@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  March 24, 2025 05:40 ET (09:40 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":null,"symbol_name":null,"start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2521201716","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2521201716","pubTimestamp":1742809200,"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":"0940 GMT - The thesis that loan growth and the shape of the yield curve would be key for European banks' this year is now playing out thanks to geopolitics, Keefe, Bruyette & Woods says in a research note. \"We believe the market is only at the beginning of comprehending what an upward sloping yield curve may mean for banks earnings  and is still not yet attributing any real value to terminal growth in its valuation ,\" analysts write. Banks' earnings are likely to keep on moving higher and the rerating still has more to go, they note. The rate-sensitive names are the best way to play the steepening of the curve as net interest margins should beat expectations and a drastic fall was already assumed. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{},"translate_title":"随着收益率曲线变陡，欧洲银行股可能会继续走高——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"03650":1,"US10Y.BOND":1,"US12M.BOND":1,"US2Y.BOND":1,"US30Y.BOND":1,"US3Y.BOND":1,"US5Y.BOND":1,"US6M.BOND":1,"US7Y.BOND":1},"content_text":"0940 GMT - The thesis that loan growth and the shape of the yield curve would be key for European banks' this year is now playing out thanks to geopolitics, Keefe, Bruyette & Woods says in a research note. \"We believe the market is only at the beginning of comprehending what an upward sloping yield curve may mean for banks earnings (positive) and is still not yet attributing any real value to terminal growth in its valuation (also positive),\" analysts write. Banks' earnings are likely to keep on moving higher and the rerating still has more to go, they note. The rate-sensitive names are the best way to play the steepening of the curve as net interest margins should beat expectations and a drastic fall was already assumed. 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