European banks set to enjoy higher lending income in 2023

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.

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