Lending income at many European banks is poised to climb in 2023 and rise further in 2024, amid tightening monetary policy.
In a sample of 25 of the continent’s largest banks, 23 are set to record year-over-year increases in net interest income — the difference between interest revenues and interest expenses — in 2023, according to analyst consensus estimates compiled by S&P Global Market Intelligence. Spain-based Banco Santander SA is poised to book the highest level of net interest income at €41.51 billion.
Fifteen of the banks are expected to record even higher NII in 2024, including Santander, fellow Spanish bank Banco Bilbao Vizcaya Argentaria SA, UK-based HSBC Holdings PLC, Dutch bank ING Groep NV and Germany’s Deutsche Bank AG.
Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.