European Banks promise €120bn of shareholder returns on interest rate gains.

Note: Below are extracts from articles regarding the European Banks interest rate gains, published by The Financial Times (26th February 2024) and RTE ( rte.ie 26th February 2024) as referenced below.

In the news article below, Walker (2024) reveals that the biggest banks in Europe have seen a recent surge in net interest income and plan to issue these significant headline dividends, coupled with a share buy-back programme, which is good news for investors

with interest rate cuts on the horizon, what next for the major banks?

According to Walker (2024) the European banking sector has significantly recalibrated its balance sheets in recent years, reducing risk and increasing profitability across the board, while also benefitting from somewhat more relaxed regulation on stock buy-backs. That said, despite some of the excess numbers being returned to investors, indications are this year, that other sources of income will be required as Central Banks more than likely commence a cycle of interest rate cuts.

Read the full article on the pdf below or download here

ft-RTE-articles-INTEREST-RATES-FOCUS-28-02-24

References

Walker,O. (2024) ‘European banks promise €120bn of shareholder returns on interest rate gains’. Financial Times February 26. Available at: https://www.ft.com/content/04205127-40c7-42bc-b988- 1094ce8ddb25 . ( Accessed 26 February 2024)


RTE (2024) ‘Bank of Ireland reports pre-tax profits of €1.9 billion for 2023 but shares sink’. February 26. Available at: https://www.rte.ie/news/business/2024/0226/1434409-bank-of-ireland-annual- results/ (Accessed 26 February 2024).

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