JPMorgan Says Shareholder Returns Are at Peak for European Banks
- Central bank rate cuts set to reduce lender’s earnings power
- Strategists remain underweight on European bank stocks
The central financial and business district in Frankfurt.
Photographer: DAniel Roland/AFP/Getty Images
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European banks’ capital returns to shareholders may have already reached a peak, according to JPMorgan Chase & Co strategists.
The prospect of central bank rate cuts this year will reduce earnings power for the sector, a team led by Mislav Matejka wrote in a note Monday, adding that current returns “are likely as good as it gets.”