European Banks: Citi European Banks Weekly

Research evidence excerpt

European Banks: Citi European Banks Weekly

Roundup |

European Banks

Citi European Banks Weekly 03 Aug 2026 10:50:12 ET

ACWestern Europe | CEEMEA Andrew Coombs, CFA

Focus +44-20-7986-4053

Last week, majority of the European banks delivered a strong 2Q/1H’26 earning season. Simon Nellis

Management commentary remained constructive on the back of improving investor

+44-20-7986-4012

sentiment despite a moderate macroeconomic backdrop.

We recap our thoughts below on European banks which reported 2Q26 results. For a Borja Ramirez Segura

summary of European bank results to-date see: +44-20-7508-0206

Citi European Banks 2Q26 Results Scorecard

Shrey Srivastava

+44-20-7986-2608

Barclays - shares declined 5% on the day of results as the UK and US Consumer Bank both

missed on revenues. In addition Barclays confirmed £0.45bn of additional cost spend in the

second half, and despite expecting these to have "a commensurate improvement in 2027

efficiency" yet management would not be drawn on exactly where these actions are being

taken, nor on what this means for the 2027/28 cost base and return profile. In turn we cut

2026E EPS by 5% and left 2027-28 unchanged. See: Focused on An 'All Weather'

Sustainable RoTE and Barclays Model Update.

Lloyds - reacted positively to a small PBT beat and a comprehensive strategic update, plus a

new £1bn buyback was announced and the dividend rebased 30% higher. Although the new

2028 and 2030 targets were below consensus they were predicated on highly conservative

assumptions, suggesting no reason for consensus EPS to decline even if we expect upgrades

will also be limited at this stage. Meanwhile management presented a compelling strategic

vision for the future including new consumer ‘ecosystems’. See: A Plan Built on Conservative