European Banks Daily 15 June 2026

Research evidence excerpt

European Banks Daily 15 June 2026

15 YE26 target for BAP unchanged

(implying ~13% upside). IFS trades at a more reasonable ~1.7x P/BV, but our US$56 target

implies only ~1% total return. At the sector level, we continue to like BAP and IFS over the long

term, but in the near term we would prefer Chilean or Argentine banks—the first due to strong

profitability metrics helped by inflation, and the second on ROE recovery and improving

sentiment toward the country.

Nubank:False Alert, Rapid Response, and Early Signals of Normalization

Yuri R Fernandes (1-212) 622-3400

Last Friday, a small group of Nubank customers (~20k) received an erroneous notification

stating that the bank had entered “liquidation” (link). The company quickly denied it (link),

mentioning an operational error. The episode nonetheless spread quickly on social media,

pushing Nubank into Brazil’s trending topics on X and driving a short-lived spike in Google

Trends activity - Figure 2 below already shows a normalization. Moreover, a number of Brazilian

financial influencers also weighed in, often highlighting Nubank’s profitability and capital

position, which may have helped stabilize sentiment.

APAC

LIC Housing Finance:Growth guidance optically punchy, but delivery is key; stay Neutral

Gaurav Khandelwal, CFA (91-22) 6157-3575

LICHF’s loan growth guidance of 10-12% and disbursements of Rs780bn (up 17% y/y) is

ambitious. A shift in distribution model through channel partners should improve growth, but is

value dilutive. Our calculations suggest incremental disbursements via partners run at a ~40bps

RoA loss (see Table 3 for calculations). Further, chasing prime mortgage growth in a highly

competitive environment will keep loan yields under pressure. Management’s mixed delivery