European Banks Daily 18 May 2026

Research evidence excerpt

European Banks Daily 18 May 2026

rect Investments, Other Operating Businesses, And Carry

Kenneth B. Worthington, CFA (1-212) 622-6613

Brookfield Corporation reported 1Q26 DE / Sh of $0.66, topping both Bloomberg consensus and

our own estimates of $0.62. As we outlined in our 1Q26 BN earnings preview, asset management

business contributions were already known from the 1Q26 BAM earnings print (our detailed

review is linked). On the BN specific side, DE contributions from Direct Investments grew QoQ

for the first time in 4 quarters, with actuals of $266mm handily beating JPMe of $216mm. BN

called our a $120mm benefit from a partial monetization of a technology investment, and

highlighted additional positions in technology oriented investments, including on BN’s balance

sheet which the firm sees as well positioned to generate future upside. Wealth Solutions

(Insurance) earnings of $430mm were in line with our projections. DE from Operating

Businesses of $360mm were ahead of our $338mm estimate (puts and takes outlined below).

Corporate costs and other of $162mm were more burdensome than the $148mm we were

modeling. Net carry of $157mm was above our $141mm projection. BN reiterated its long term

value creation centric approached, and argued that periods of higher volatility such as the one

experienced during 1Q26 are often attractive times to build businesses. Management pointed to

Real Estate as an example of an asset class that was generally viewed less favorably by the market

during the years post Covid, but in Brookfield’s view has had strong fundamentals during the

period (in the right sub asset classes). BN argued that sentiment is now catching up with

fundamentals, and pointed to much more amenable financing markets. Management cited