European Banks "Chart of the week #43: Updating bank niche risk ...[Erratum]"

Research evidence excerpt

European Banks "Chart of the week #43: Updating bank niche risk ...[Erratum]"

Global Research

15 May 2026ab

European Banks Equities

Europe including UKChart of the week #43: Updating bank niche risk

disclosures [Erratum] Banks

Jason Napier, CFA

Analyst

jason.napier@ubs.com

By Friday, sometimes what's wanted is a picture and fewer words +44-20-7568 5037

With so much research out there, we get the sense that sometimes investors just want to Ignacio Cerezo

be shown one thing to think about, driven by data and not opinion, with minimal text Analyst

and fanfare. Show, don't tell, is the idea behind the Chart of the Week, planned for most ignacio.cerezo@ubs.com

Fridays and good with coffee. +44-20-7568 4409

Sanjena Dadawala

Chart #43: Non-bank financial exposure, software lending, leveraged loans... Analyst

Investors are still focused on pockets of potentially higher credit risk within niche loan sanjena.dadawala@ubs.com

and debt securities books, incentivised by rapid growth in that debt pool and material +44-20-7567 0753

provisions taken in 1Q by Barclays and HSBC in particular (the latter a surprise at $0.4bn Johan Ekblom, CFA

in a $3bn securitisation finance portfolio). We update our sector-wide scorecard of bank Analyst

disclosures with new information shared at 1Q. johan.ekblom@ubs.com

+44-20-7568 3580

Our view remains i) losses so far are driven by fraud, not deteriorating credit conditions, Alvaro Fernandez-Garayzabal

ii) the pool is so big that other charges are virtually assured and, given investor interest, Analyst

alvaro.fernandez-garayzabal@ubs.com

those provisions will achieve media prominence, so iii) we are likely to see a reduction in

+34-91-436 9622

credit availability in some quarters (that's worth monitoring, in our view, given high