European Banks Daily 27 May 2026

Research evidence excerpt

European Banks Daily 27 May 2026

J P M O R G A N Europe Equity Research

27 May 2026

European Banks Daily

Daily Valuation Sheet | Banks Analyser & Global Banks and Fintech Valuation European Banks

ACWeekly sheet | European Banks 2026 Outlook - PODCAST | European Banks Results Kian Abouhossein

Calendar: April-May (44-20) 7134-4575

kian.abouhossein@jpmorgan.com

Research J.P. Morgan Securities plc

Specialist Sales contact details:

EMEA

Gigi Sparling - Specialist Sales -

European Financials

Investment Companies Daily:GRID senior financing, BPCR/JZCP April NAV, (44-20) 7134-0355

BHMG shareholder/risk report, ENRY Mar NAV, OCI investment ghislaine.sparling@jpmorgan.com

Christopher Brown (44-20) 7134-4722

Equity Strategy (Mislav Matejka, CFA) – Bond yields and market leadership

–At the overall market level, from 2H of March we have consistently argued to buy

the dips caused by adverse geopolitical news. Akin to the Liberation Day V-shaped

pattern from last year, we believe the main parties will ultimately be focused on

finding an off-ramp, we expect the earnings outlook to stay strong, do not see

stagflation as the most likely outcome in 2H, and in March called that Mag-7 was set

to rebound – remain constructive. Now, beneath the market surface, the low Volatility

part of the equity market, the quintile of stocks with the lowest variation in price

moves, has done very poorly both in the US and in Europe in the past few months. The

weak performance of the low Vol group shadowed the moves in bond yields. Last

week we argued that this could be an opportunity to add to these stocks, and we believe

that this call is relevant irrespective of where bond yields go from here. If bond yields

were to spike again, let’s say the US 10-year moves towards 5%, then the overall