Lates News

The strong performance of Wall Street's large banks in the second quarter has boosted market expectations for the upcoming earnings season of European investment banks. JPMorgan Chase stated that trading revenue and investment banking fees in the US banking industry both significantly exceeded market expectations, and management's statements also indicated ample reserves for transaction projects such as mergers and acquisitions and financing, providing continued support for overall business activities. This is significant for European peers as the valuation of European investment banks remains significantly lower. JPMorgan Chase pointed out that the price-to-earnings ratios of Goldman Sachs and Morgan Stanley are around 15 times expected earnings for 2028, while the average price-to-earnings ratio of European investment banks is only around 8.5 times. Kian Abouhossein, Co-Head of Global Banking Research at JPMorgan Chase, said: "There is room for revaluation of European investment banks, and EPS expectations are expected to be revised upwards." Despite expectations of a slowdown in business activities in the second half of the year, he still maintains an optimistic stance on the industry, believing that market uncertainty will continue to support trading revenue and investment banking reserves remain robust.