Shares of UniCredit, Raiffeisen and Erste rose sharply over the past week on European stock exchanges. UniCredit gained 14 percent, while Raiffeisen and Erste each climbed nearly 11 percent. BRD moved the other way, falling 1.4 percent over the same period.
Rate rises feed into bank income
Part of the gains is attributed to interest income. The European Central Bank raised its key rate in June and again in September, to 2.5 percent. Investors expect another increase in February.
Euribor has risen in parallel. The three-month rate stands at 2.8 percent, up from 2 percent in January. Client loan rates reset every three or six months, which is faster than deposit rates adjust.
Leadership change at the ECB
Christine Lagarde leaves the ECB on 7 February, nine months before her mandate ends. Klaas Knot and Pablo Hernández de Cos are cited as favourites to succeed her.
Banca Transilvania publishes its results on 20 November. Erste and Raiffeisen both reported higher nine-month profits than a year earlier, and their forecasts were revised upward.
Source: European Central Bank
