Tuesday, 3 December 2024, 15:30 CET

Spanish banks enjoyed a strong Q3 driven again by high interest margins and low provisions. The challenge now is to return to steady loan growth while generating more commissions as interest margins shrink. Extension of the bank tax could erode profits.

Italian banks have revised their 2024 earnings forecasts after strong nine-month results underpinned by resilient net interest income, a rebound in fees, and solid credit quality. Lenders are now focused on stabilising profits through the rate cycle.

Homeowners in some European markets prefer floating-rate mortgages while others prefer longer-dated fixed interest rates. Given that borrowing costs are all linked to the same ECB rates, this is somewhat counter intuitive.

The recent UK Court of Appeal ruling in favour of consumers on undisclosed commissions on car finance is expected to have a moderate impact on UK banks rated by Scope, reducing profits at some banks but not posing systemic risk.

Even blue-chip companies with the strongest sustainability profiles, including robust ESG-mitigation strategies, have much room to improve their environmental and social impacts.

With sovereign credit quality reflecting fiscal and economic challenges, the Draghi report offered valuable insights into how to address some structural issues facing the euro area. But the report was notably silent on the contribution of covered bonds.

DNB’s acquisition of Carnegie, subject to regulatory approval, marks a strategic move that strengthens the Norwegian lender’s business model while opening up growth opportunities in the Nordic region.

In 1769, Frederick the Great, King of Prussia, introduced the legal basis for an instrument that developed into Germany’s Pfandbrief, the forerunner of all covered bonds. How would he have reacted to the Draghi report on European competitiveness?

Scope Ratings calls for comments on its General Corporate Rating Methodology by 16 November 2024. The update strengthens, refines and further clarifies Scope’s analytical approach. A limited impact is expected on outstanding issuer and debt ratings.