We expect Deutsche Bank’s performance to be more predictable this year but focus on cost efficiency is needed to avoid cost slippage. Frontloading non-operating costs weighed on 2024 results but should help bridge the gap to 2025 strategic targets.

With valuations at their highest in years and interest rates falling, Italian banks are seeking new levers of value creation, which has led to a surge in M&A and upbeat financial forecasts. In this context, increased risk-taking could pose challenges.

BPER Banca’s all-share bid for its smaller rival Banca Popolare di Sondrio could be beneficial for both banks, although the risks of sub-optimal tie-ups are increasing in the current market environment.

Georgia’s microbank framework is designed to enhance financial-sector competitiveness, expand the range of product offerings and services, and support entrepreneurs and the self-employed, driving economic growth.

A digital euro can strengthen the resilience and autonomy of Europe’s payment ecosystem and preserve the relevance of European banks. But it also has a potential to weaken bank profitability, increase costs, and accelerate runs on deposits in a crisis.

ING and Goldman Sachs’s decisions to sell their Russian subsidiaries marks a key step in mitigating reputational, legal, and financial risks. But finalising sales still presents challenges due to stringent local legislation and multi-stage approvals.

MPS’s hostile all-share bid for Mediobanca to form Italy's third-largest financial institution faces high execution risk due to differing business models and challenges in achieving sustainable synergies.

The planned asset-management joint venture between BPCE and Generali supports BPCE’s strategic focus on business diversification, strengthening its franchise, growing its revenue base and addressing its profitability gap relative to other French peers.

European banks’ solvency profiles are generally robust. Strong profitability and RWA optimisation have supported capital positions and facilitated higher dividend payouts and share buybacks.

Banks are well positioned to weather a potential deterioration in the credit cycle. Scope’s bank ratings and issuer outlooks are largely stable, reflecting balanced upside and downside risks.