Analysts expect a better-than-anticipated earnings season for banks in Europe and the United States. Banco Santander will present its accounts on Wednesday, followed by BBVA, Sabadell, CaixaBank, and Unicaja.
The Spanish stock market will present results again next week, and analysts believe that the European Central Bank (ECB) interest rate hike could boost the profits of listed companies, including major banks. This is reported by El Periódico de Aragón, which summarises the forecasts of investment banks.
According to these estimates, Goldman Sachs and UBS expect a season that is “better than anticipated” in both Europe and the United States. Banco Santander will kick off the bulk of presentations on Wednesday, followed by BBVA, Banco Sabadell, CaixaBank, and Unicaja on Thursday and Friday.
Goldman Sachs strategists Christian Mueller-Glissmann and Peter Oppenheimer have stated:
“We expect the upcoming earnings season to surprise on the upside, both in the United States and Europe.”
The firm anticipates an 18% growth in profits on Wall Street by 2027.
Meanwhile, Jason Napier from UBS has raised his forecast for earnings per share for European banks in 2027 by 0.5% in September. He also expects an improvement in accounts in the third quarter, supported by interest rates and credit growth. However, Napier warned that the first week has not started well and noted:
“The first week of the bank earnings season is usually the weakest.”
Wolf von Rotberg, equity strategist at J. Safra Sarasin Sustainable Asset Management, believes that market consensus anticipates another exceptional quarter. Investors will also monitor provisions to see if the rising cost of credit begins to weigh on accounts.
The most concrete risk for the markets is the French sovereign debt crisis, which could extend to European companies. The yields on French ten-year bonds have surpassed 5% for the first time since 2002, rekindling fears of a debt crisis in the eurozone comparable to that of 2010, due to the country's difficulty in passing its 2027 budget.
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