European Banks Daily 8 June 2026

Research evidence excerpt

European Banks Daily 8 June 2026

J P M O R G A N Europe Equity Research

08 June 2026

European Banks Daily

8 June 2026

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

ACWeekly sheet | European Banks 2026 Outlook - PODCAST Kian Abouhossein

(44-20) 7134-4575

Highlights kian.abouhossein@jpmorgan.com

Global Banks:China investment regulations triggering WM revenue J.P. Morgan Securities plc

uncertainty for HSBC / STAN as well as UBS / BAER

Specialist Sales contact details:Kian Abouhossein (44-20) 7134-4575

Recent news from China on its enforcement of market discipline on investments has Gigi Sparling - Specialist Sales -

European Financialsraised questions around the risks of capital control, and has led to the share price

(44-20) 7134-0355

decline of some players, including HSBC (c3% since Tuesday last week) and ghislaine.sparling@jpmorgan.com

StanChart (c6%). Our focus is on two parts: 1) China’s crackdown on illegal cross-

border securities activities (previously discussed here,here) where we estimate

revenue at risk of c2% & EPS at risk of 4%/5% for HSBC/StanChart from

Mainland China Visitors (MCVs) in relation to wealth and deposit income from

new and existing MCV clients. We assume at this point that the new enforcement

proposal will apply to front book flows, and not the back book. Our on-the-ground

checks show that MCVs can continue to open bank accounts andinvestment

accounts if they are physically present in HK SAR, but the approval process now

takes longer than before, which adds friction to the account-opening process and

could hamper growth. 2) China’s new regulation on Outbound Direct Investment

(ODI) which primarily targets enterprises’ outbound direct investment, but also