European Banks Daily 28 May 2026

Research evidence excerpt

European Banks Daily 28 May 2026

Kian Abouhossein AC Europe Equity Research

(44-20) 7134-4575 28 May 2026 J P M O R G A N

kian.abouhossein@jpmorgan.com

deposit market dynamics, lending demand and pricing after the conflict in the Middle East, asset

quality, operational leverage through scale, and M&A. The biggest concern investors brought

with them—a deposit war—is not happening. Spain’s excess deposits, small balances, and deep

anchor-customer relationships provide strong lines of defence. Scale and speed to market,

meanwhile, are emerging as the decisive advantages in Spanish banking. CABK (Overweight)

and BBVA (Overweight), each investing 4-5% this year in costs, are pulling away from smaller

rivals that cannot keep up.

Research

EMEA

Investment Companies Daily:HICL final results, FGEN March NAV, GRID JV, NBPE

April NAV, HGT investment, CYN moving to Tufton, BOOK realisation

Christopher Brown (44-20) 7134-4722

HICL Infrastructure (HICL, Neutral) - Final results - HICL’s NAV at 31/3/26 was 160.2pps,

up 4.1% from the 30/9/25 NAV and 0.4% below JPMe 160.9pps (excluding the estimated XLT

impact). Including dividends paid, the NAV TR for the full year was 10.3% and over the full year

the NAV rose 4.6% in capital terms. The weighted average discount rate rose by 0.1% pts from

8.4% as at 31/3/25 to 8.5% as at 31/5/26 although this reflects only a change in the portfolio mix

and there were no underlying discount rate changes. The sale of the A63 Motorway and a higher

weight for growth assets drove the small increase to the average discount rate. HICL says that

movements in government bond yields were balanced by strong transaction evidence on pricing.

The underlying portfolio gross return was 12.2% over the full year and 10.5% if excluding the

impact of disposals.