European Banks Daily

Research evidence excerpt

European Banks Daily

J P M O R G A N Europe Equity Research

29 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: Mythos-class era: Cybersecurity a bigger concern than credit J.P. Morgan Securities plc

risk

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

Cybersecurity in Banks is currently one of the biggest undiscounted risks not reflected Gigi Sparling - Specialist Sales -

European Financialsin Bank valuations in our view, partly due to the limited disclosure available which

(44-20) 7134-0355

leads to a lack of comparability between banks on their preparedness or lack thereof ghislaine.sparling@jpmorgan.com

to deal with emerging cybersecurity risk (pre-event and post-event processes), driven

by advanced AI capabilities such as Frontier Models. While there is significant

regulatory focus on capital ratios, we believe looking at cybersecurity risk through the

lens of the capital framework is not the best approach. In our view, there should be an

increased focus on cybersecurity driven liquidity risk and this should be tested

through increased infrastructure resilience testing and through a deposit-run

liquidity haircut test as we believe liquidity, not credit risk, could be the main

trigger in a scenario of a potential banking crisis with social media likely to

trigger unprecedented volatility in deposit flows as we witnessed at Credit Suisse.

In this changing environment, we are likely to see differentiation between players,

based on: i.) Geopolitics - US players are likely at an advantage, having early access