European Banks: Stability Amid Change

In this episode of the Know More. Risk Better. podcast Logan Miller welcomes Simon Adamson and Paola Biraschi to discuss the 2024 earnings results for European banks, highlighting stable performance and market reactions. They explore M&A activity, noting several ongoing deals and their potential credit impacts, while emphasizing the complexity and prevalence of hostile takeovers. The discussion also covers regulatory changes, particularly Basel 3.1 and the Crisis Management and Deposit Insurance package, and their implications for capital issuance and bank strategies. Despite geopolitical uncertainties, the team maintains a positive outlook on AT1 instruments due to attractive yields and assesses bank performance and positioning, noting tightened credit spreads and strong performance over the past year.