Research, Fundamental

European Banks: Tougher 2024 Amid Easing Interest Rate Tailwind

Firdaus Ibrahim, CFA, Equity Analyst
18 January 2024

Summary

European banks are expected to perform well in Q4 2023 due to higher interest rates. However, their performance is expected to decline in 2024 due to economic headwinds and geopolitical uncertainties. This may lead to reduced loan demand, higher loan loss provisions, and increased operating expenses.


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