BofA sees solid Q2 operating trends in Spanish banks, cuts BBVA to 'neutral', Unicaja to 'underperform'
XLF•Rating changes on BBVA and Unicaja
It cuts BBVA BBVA.MC to "neutral" from "buy" with Turkey's normalization delayed, which leads to limited visibility on potential outcomes and range-bound valuation.
It downgrades Unicaja UNI.MC to "underperform" from "neutral" as valuation has gone too far and earnings per share (EPS) now offers no scope for further upward revisions.
Caixabank remains the preferred name
It adds that Caixabank CABK.MC, the only "buy"-rated in the sector, still offers the best combination of NII gearing, non-interest income growth and use of capital among the domestic banks.
BofA sees solid Q2 operating trends in Spanish banks
BofA Global Research sees solid operating trends in Spanish banks in Q2, with net interest income growing quarter on quarter courtesy of rates and deposits.
The brokerage also sees fees for Q2 **2%-3% ahead of consensus, with fees positively affected by markets and activity; cost of risk still benign despite a macro projections update.
