Long Bankinter/Short Sabadell - The Half Time Whistle; Long Unicredit - Positive Catalyst Watch

Research evidence excerpt

Long Bankinter/Short Sabadell - The Half Time Whistle; Long Unicredit - Positive Catalyst Watch

Gigi Sparling - Specialist Sales - European Financials AC (44-20) 7134-0355 Europe Specialist Sales J P M O R G A Nghislaine.sparling@jpmorgan.com

J.P. Morgan Securities plc 17 July 2026

Long Bankinter/Short Sabadell - The Half Time Whistle; Long Unicredit -

Positive Catalyst Watch

Gigi Sparling

+44 207 134 0355

ghislaine.sparling@jpmorgan.com

I’m away this weekend so an early (and slightly abbreviated) weekly from me, in what is a painful tape for most. I hope

everyone gets some rest over the weekend. Use the links below to jump straight to each section:

Ideas for Next Week

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Long Bankinter, Short Sabadell: The half time whistle. Sabadell has seen around 12% consensus downgrades in 2026 –

roughly half of which is due to the TSB disposal and half from the underlying business which makes it the bank with the biggest

negative momentum on EPS downgrades that we cover in Europe. Marta initiated on the stock this week with an Underweight

and whilst she’s 2% above consensus into Q2 she’s 11% below consensus 27-28 and we think Sabadell will continue to trail the

peer group on almost every P&L line. Bankinter on the other hand has seen 3% consensus upgrades in 2026 and 6% in 2027 and

yet the stock has lagged the sector this year given the deposit strategy of the bank – but we think those concerns are overdone

with Bankinter’s customer spread widening to 2.71% in Q2 with loan yields rising and cost of deposits holding steady and a flat

LDR ratio.