Eurozone bank shares are poised for their highest end to the year in more than a decade after lenders weathered a fall in interest rates and promised record shareholder returns.
The Euro Stoxx Banks index, which tracks the biggest lenders in the currency bloc, is on course to close the year above 142 for the first time since 2010, having jumped by more than a fifth in 2024.
Profits at European lenders have been boosted over the past three years by higher interest rates. But even as central banks started to cut rates this year, fears about pressure on lenders’ net interest margins did not weigh on share prices.
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