European Banks to Gain from Increasing Corporate Lending, AI Boom
Dow Jones
3 hours ago
0732 GMT - European banks are set to benefit from accelerating loan growth among corporates, Citi analysts say. Business are starting to releverage, with corporate debt-to-GDP at multiyear lows. The U.S. bank believes this acceleration is sustainable and will be helped by AI investment. Banks in the U.K., Ireland and Netherlands are well placed to benefit from this trend, the analysts add. U.S. hyperscalers also require European debt financing, and AI investment should help fee and trading income, Citi writes. U.S. banks are best positioned to benefit from the trend, but European banks should also be boosted. ING, ABN AMRO and Societe Generale are particularly well-placed for lending and UBS and Barclays for new debt and equity issuance, Citi says.
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