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Europe financial ETF iShares MSCI Europe Financials ETF (EUFN - Free Report) has advanced about 12.7% this year and added about 2.1% past week. Upbeat financial earnings probably have led to the uptick in Europe financial ETF past week (as of May 1, 2023). Considering that the global economy has been struggling with a banking crisis since early March, the reassuring earnings result should provide some relief.
Inside Earnings
HSBC Holdings recently announced a tripled quarterly profit that exceeded expectations due to the worldwide increase in interest rates, which raised the lender's income and enabled it to pay its first quarterly dividend since 2019.
This exceptional performance occurred at a time when the global banking sector was facing turbulence, including the closure of Silicon Valley Bank and Signature Bank in March, as deposit flight from U.S. lenders necessitated emergency measures by the Fed. Additionally, Credit Suisse had to be rescued by UBS. It announced a dividend of $0.10 per share, its first quarterly dividend since 2019, following calls of shareholders to increase the dividend payout.
After a turbulent period that caused market fears of a global banking crisis, Deutsche Bank reported, in late April, a net profit of 1.158 billion euros ($1.28 billion) for the first quarter. This result surpassed the consensus forecast of 864.54 million euros from a Reuters poll of analysts and represented an increase from 1.06 billion euros in the first quarter of 2022. The net profit was attributable to shareholders.
The German lender has achieved a profitable quarter for the 11th consecutive time following the implementation of a comprehensive restructuring plan that began in 2019. This plan aimed to increase profitability and reduce costs.
In late April, Barclays announced a net profit of £1.78 billion ($2.2 billion) for the first quarter, exceeding expectations and representing a 27% increase from the previous year. The consensus forecast from a Reuters poll of analysts had predicted a net profit of £1.432 billion.
The bank's consumer, cards, and payments division experienced a significant increase in income, rising by 47% on a branch basis, which offset the meager 1% growth observed in its corporate and investment bank division. The acquisition of retailer Gap's credit card portfolio played a part in this outcome.
Against this backdrop, below we highlight the pureplay Europe financial ETF in detail.
EUFN in Focus
The underlying MSCI Europe Financials Index is a free float-adjusted market capitalization weighted index designed to measure the combined equity market performance of the financials sector of developed market countries in Europe. HSBC takes the top position in the fund with about 8.30% weight. The fund holds 77 stocks in focus. The fund charges 49 bps in fees and yields 3.76% annually.
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Time for Europe Financial ETF on Upbeat Earnings?
Europe financial ETF iShares MSCI Europe Financials ETF (EUFN - Free Report) has advanced about 12.7% this year and added about 2.1% past week. Upbeat financial earnings probably have led to the uptick in Europe financial ETF past week (as of May 1, 2023). Considering that the global economy has been struggling with a banking crisis since early March, the reassuring earnings result should provide some relief.
Inside Earnings
HSBC Holdings recently announced a tripled quarterly profit that exceeded expectations due to the worldwide increase in interest rates, which raised the lender's income and enabled it to pay its first quarterly dividend since 2019.
This exceptional performance occurred at a time when the global banking sector was facing turbulence, including the closure of Silicon Valley Bank and Signature Bank in March, as deposit flight from U.S. lenders necessitated emergency measures by the Fed. Additionally, Credit Suisse had to be rescued by UBS. It announced a dividend of $0.10 per share, its first quarterly dividend since 2019, following calls of shareholders to increase the dividend payout.
After a turbulent period that caused market fears of a global banking crisis, Deutsche Bank reported, in late April, a net profit of 1.158 billion euros ($1.28 billion) for the first quarter. This result surpassed the consensus forecast of 864.54 million euros from a Reuters poll of analysts and represented an increase from 1.06 billion euros in the first quarter of 2022. The net profit was attributable to shareholders.
The German lender has achieved a profitable quarter for the 11th consecutive time following the implementation of a comprehensive restructuring plan that began in 2019. This plan aimed to increase profitability and reduce costs.
In late April, Barclays announced a net profit of £1.78 billion ($2.2 billion) for the first quarter, exceeding expectations and representing a 27% increase from the previous year. The consensus forecast from a Reuters poll of analysts had predicted a net profit of £1.432 billion.
The bank's consumer, cards, and payments division experienced a significant increase in income, rising by 47% on a branch basis, which offset the meager 1% growth observed in its corporate and investment bank division. The acquisition of retailer Gap's credit card portfolio played a part in this outcome.
Against this backdrop, below we highlight the pureplay Europe financial ETF in detail.
EUFN in Focus
The underlying MSCI Europe Financials Index is a free float-adjusted market capitalization weighted index designed to measure the combined equity market performance of the financials sector of developed market countries in Europe. HSBC takes the top position in the fund with about 8.30% weight. The fund holds 77 stocks in focus. The fund charges 49 bps in fees and yields 3.76% annually.