02/06/2006 14:05
The preference of Swiss bank UBS for the BOC share has remained strong.
According to the UBS analysts on the European and international banking sector, “although market volatility could persist in the near term, we believe several stocks with robust fundamentals now offer compelling valuation upside. The following are some of our highest conviction bottom-up ideas: Goldman, Barclays, BNPP, TD Bank, SMGF, Bank of Cyprus, Kookmin, Standard Bank, Itau, BRI and Komercni”.
“The Bank will continue to benefit from the expansion and increasing maturity of its branch network in Greece, the widening of deposit spreads in the Greek market, the sustained FX deposit growth in the Cyprus market, the market share gains in Cyprus and the lower provisioning tendency and write backs in Cyprus”, the UBS analysts supported.
Banking sectors enters another period
According to the UBS report, the global banking sector has entered another period of market volatility due to inflationary pressures. “Market sentiment has also weakened in recent weeks on worries that central banks could push interest rates too high”, the report added.
However, “the underlying fundamentals of the global banking sector have continued to improve further”.
European banking sector
According to the Swiss bank, “the period of significant upward revisions to bank earnings could be coming to an end but we believe that strong profitability and capital strength on top a more than reasonable growth outlook will underpin a recovery in the earnings multiple”.
The UBS analysts prefer the Greek banks, Barclays, CS Group and Raiffeisen.
It is worth noting that the UBS report might have a conflict of interest with the Bank of Cyprus, which possibly affects its impartiality.
According to the UBS analysts on the European and international banking sector, “although market volatility could persist in the near term, we believe several stocks with robust fundamentals now offer compelling valuation upside. The following are some of our highest conviction bottom-up ideas: Goldman, Barclays, BNPP, TD Bank, SMGF, Bank of Cyprus, Kookmin, Standard Bank, Itau, BRI and Komercni”.
“The Bank will continue to benefit from the expansion and increasing maturity of its branch network in Greece, the widening of deposit spreads in the Greek market, the sustained FX deposit growth in the Cyprus market, the market share gains in Cyprus and the lower provisioning tendency and write backs in Cyprus”, the UBS analysts supported.
Banking sectors enters another period
According to the UBS report, the global banking sector has entered another period of market volatility due to inflationary pressures. “Market sentiment has also weakened in recent weeks on worries that central banks could push interest rates too high”, the report added.
However, “the underlying fundamentals of the global banking sector have continued to improve further”.
European banking sector
According to the Swiss bank, “the period of significant upward revisions to bank earnings could be coming to an end but we believe that strong profitability and capital strength on top a more than reasonable growth outlook will underpin a recovery in the earnings multiple”.
The UBS analysts prefer the Greek banks, Barclays, CS Group and Raiffeisen.
It is worth noting that the UBS report might have a conflict of interest with the Bank of Cyprus, which possibly affects its impartiality.
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