European Banks Daily

Research evidence excerpt

European Banks Daily

J P M O R G A N Europe Equity Research

13 July 2026

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

ACWeekly sheet | *EMEA Banks 2Q Results Calendar: Jul-Aug 2026* Kian Abouhossein

(44-20) 7134-4575

Highlights kian.abouhossein@jpmorgan.com

French Banks: Paris Tour Feedback J.P. Morgan Securities plc

Delphine Lee (44-20) 7134-3971

Specialist Sales contact details:We recently organised a financials tour to Paris, where we met with Société Générale

CFO Leopoldo Alvear, and BNP Paribas CFO Lars Machenil and Deputy COO in Gigi Sparling - Specialist Sales -

European Financialscharge of CPB Eurozone Yannick Yung. Overall, the message was constructive, with

(44-20) 7134-0355

both companies focused on: a) accelerating top-line growth with a positive outlook for ghislaine.sparling@jpmorgan.com

NII, b) controlling costs and improving efficiency, notably mostly through support

functions and IT rationalisation. For SG, most of its businesses already earn decent

returns outside of France, and its digital bank Boursobank is the group’s best asset with

significant growth potential. BNP does not have the same digital banking strategy but

has strong growth opportunities by leveraging the group’s leading corporate and asset

gathering franchises. Whilst French politics can weigh on Cost of Equity in the short

to medium term, banks with solid bottom-up stories can still perform, in our view. We

remain OW SG demonstrating ongoing delivery on C/I and ROTE improvement with

strong capital enabling the bank to offer total yield of 9% pa FY26-28e, and we also

reiterate our OW BNP, which shows faster progress on CET1 to 13% with upside to

distribution expectations and long term profitability potential largely undiscounted.

Research