In his opinion, the evolution of the European banking sector in 2022 has not fully discounted “the improvement in the profit prospects” of the banks of the Old Continent, which “is still not largely rewarded”.

In his assessment, the consensus forecasts do not adequately reflect “the future benefits of higher interest rates.” Conversely, the market continues to focus much more on “the risks of an economic slowdown,” which “continue to weigh heavily on valuations (even though they are already adequately reflected in consensus expectations of credit losses).”