European Banks Get Profit Upgrades After Undershooting Six Years

European banks, still recovering from the region’s sovereign-debt crisis and years of anemic economic growth, are beginning to generate optimism.

The industry is enjoying positive earnings revisions after six years of downgrades as analysts start to price in better prospects for Europe’s economy and a rebound in bond yields. Analysts have increased their estimates for operating-income growth by about eight percentage points from 10 months ago. Even so, the sector remains one of the cheapest in Europe.