European Banks Daily

Research evidence excerpt

European Banks Daily

oelis margins. Mgmt reiterated non-

compensation expense growth guidance ranging between ~16-17% y/y as posted in FY25 but

alluded that expenses, particularly tech costs, are running hot YTD; as such, we currently model

y/y non-comp growth of ~18% in FY26 (JPMe 2Q26 $63mn, +19% y/y). Our rating remains

unchanged and our Dec-26 price target is also unchanged at $70 after adjusting our target

multiple one-turn lower on the back of the large investment banks’ earnings releases and

warnings of a peak environment.

Exchange Volumes Update:Week of July 10 - July 16: Flat-to-Lower Volumes this Week,

excl. Cboe’s Flagship Products; 3Q26TD Off to Mixed Start

Kenneth B. Worthington, CFA (1-212) 622-6613Daily industry volumes for the week of July 10

through July 16 were flat-to-lower this week versus last week. An outlier here were Cboe’s

flagship products. SPX and VIX options, as ADVs increased ~5% WoW despite a largely

unchanged average VIX reading throughout the week (up ~1% WoW to 16.2 from 16.1).

Conversely, industry cash equity volumes fell nearly 6% WoW and industry options volumes

were roughly flat. Separately, zooming out, 3Q26 is off to a mixed start sequentially, but volumes

are tracking more positively when comparing 3Q26TD ADVs with annual comps, particularly

in derivatives markets; see Table 1 below for details.

Large Cap Banks: Fed Weekly:C&I & NBFI Loans Down Moderately Last Week Led By

Sharp Drop in C&I, Deposits Down Very Sharply

Vivek Juneja (1-212) 622-6465

Last week, deposits fell very sharply by 1.5% at large banks but were flattish at small banks, and

deposits fell 0.7% at all banks. Borrowings rose moderately by 0.4% at large banks but were

flattish at small banks, while borrowings at all banks rose 1.2% due to sharp increase at foreign