WORLD · VERIFIED DEVELOPMENT
UBS Forecasts Double-Digit Earnings Growth for European Lenders
WHY IT MATTERS
UBS's forecast suggests a potential 35% total return for the European banking sector over two years, supported by credit growth and a favorable regulatory environment, making it an attractive investment opportunity.
What happened
Investment bank UBS has maintained a positive stance on European banks, identifying Greece as its preferred market. UBS projects European bank earnings per share to rise by 13% in 2026, 15% in 2027, and 10% in 2028, driven by credit expansion, higher equilibrium interest rates, and a steeper yield curve.
Greece stands out as the top pick within the floating-rate group, with Piraeus Bank singled out as an attractive stock.
European lenders trade at a discount of nearly 30% compared to the broader market, with total capital distribution yields reaching seven to eight percent.
PRIMARY SOURCES
UBS forecasts double digit earnings growth for European lenders through 2028
Cyprus Mail · Discovery only; publisher copyright terms apply
CORRECTIONS & UPDATES
- Revision 1 · Initial ingestion · Oct 2, 2026, 5:45 AM
- Revision 2 · Source update detected · Oct 2, 2026, 5:45 AM