Our overview of current developments in the global banking market

With zeb.market.flash, zeb publishes a quarterly, up-to-date overview of the performance of the world’s largest banks.

Click here for the current issue with the following focus topic:
Issue 46 | October 26, 2023 | Rate hike cycle coming to an end

The first chapter analyses the current situation of the banking sector. The next chapter looks at the economic situation and key drivers of the banking business. The last chapter in each issue deals with a special topic in detail.  

And here is what this issue is all about:

+ 6.5% QoQ TSR performance of Western European banks

• Global top 100 banks, led by Western European banks, again posted a good TSR performance (+2.9% QoQ) in a difficult overall market (MSCI world: -0.4%).
• The still very large P/B ratio gap between Western European banks (+0.04x QoQ to 0.75x) and their U.S. peers (-0.03x QoQ to 1.10x) has narrowed again.

+0.3% YoY real GDP growth in Q3 2023 in Western Europe 

• Next quarters’ GDP growth rates are expected to remain low, but the restrictive monetary policy of central banks is showing success in reducing inflation.
• Western European banks managed once again to come out on top in terms of profitability in Q2 2023, with an ROE of 12.9% (ex. UBS).

Rate hike cycle coming to an end

• The central banks’ balancing act between tackling inflation without stalling the economy is going into the next round and banks are affected from all sides.
• What are the effects that can be observed in the monetary transmission channels, especially the interest and credit channels? What have been and will be the implications from a banking and business area perspective?

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