Wednesday, 9 November 2022 Reading time : 2 minutes

European banks in the black
Many of the quarterly results reported by European banks in recent weeks exceeded analysts' profit estimates. In particular, financial institutions from the euro zone were able to increase their profits noticeably in the third quarter. Santander, the largest bank on the Iberian peninsula was able to increase its quarterly profit by a good 10% compared to the same period last year, the major Parisian bank BNP performed similarly. Italy's Unicredit also reported an increase in profits in the third quarter.

Interest margin business
A key source of income for all universal and retail banks is the interest margin business, the profitability of which is significantly influenced by the general interest rate situation in the respective economic area. Rising interest rates in the euro zone and Switzerland are making the deposit and lending business more attractive. Banks will benefit from this effect in the medium term, which will not only be reflected in their income statements but is also likely to be reflected in their share prices.

The Euro Stoxx Banks®, which includes 21 banks from the euro zone and therefore used as a benchmark for the development of the sector in this economic zone, has gained almost 12% in the last 6 months - more than twice as much as the Euro Stoxx 50®.

Subscription deadline Friday, November 11, 4:00 p.m.

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Callable BRC on the Euro Stoxx Banks® (EUR / CHF).

• EUR: 7% coupon p.a.
• CHF: 5.5% coupon p.a.
• 59% barrier
• 12 months maturity
• Termsheets EUR / CHF

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BRC on BNP, Santander, UniCredit and UBS (EUR / CHF)

• EUR: 12% coupon p.a.
• CHF: 10.75% coupon p.a.
• 50% barrier
• 12 months maturity
• Termsheets EUR / CHF

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BRC on UBS (CHF)

• 6.67% Coupon p.a. (10% total coupon)
• 59% barrier
• 18 months maturity
• Termsheet

indicative data

 

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