European Banks Daily 24 June 2026

Research evidence excerpt

European Banks Daily 24 June 2026

J P M O R G A N Europe Equity Research

24 June 2026

European Banks Daily

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

Research kian.abouhossein@jpmorgan.com

J.P. Morgan Securities plc

EMEA

Specialist Sales contact details:

Gigi Sparling - Specialist Sales -

FirstRand Ltd:Trading update - FY26 guidance maintained amid solid European Financials

operating momentum; UK exit a positive catalyst (44-20) 7134-0355

Baron Nkomo (27-11) 507-0385 ghislaine.sparling@jpmorgan.com

Our Take: FirstRand’s FY26 trading update indicates a challenging year dominated

by the UK motor commission redress scheme, with a further pre-tax accounting

provision of £510m (R11.2bn) raised, bringing the total expected provision to

approximately £750m (R16.5bn). This is expected to result in a contraction in

normalised earnings of between 4% and 9%, with ROE slightly below the bottom end

of its long term target range of 18-22% — versus Bloomberg consensus of -4%

earnings and 18% ROE, and our estimate of -6% and 17% ROE. Excluding the UK

provision, underlying operational performance remains robust, and guidance on

growth in normalised earnings and ROE for FY26 is maintained (guidance excluding

the UK impact was for mid-teens level growth). Balance sheet growth is healthy, with

advances growth accelerating in the second half, resulting in net interest income

growth trending slightly higher than half-year guidance, driven by the South African

and broader Africa lending franchises. Net interest margin (excluding UK) expanded

slightly, while UK operations continued to experience margin compression. Core