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Should you Buy Europe Financials ETF (EUFN) on Upbeat Earnings?
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Europe financial fund iShares MSCI Europe Financials ETF (EUFN - Free Report) can gain momentum in the near term as evident from the 0.1% five-day advancements. The fund EUFN has gained 8.1% in the past three months aganinst 3.6% gains noticed in the Europe equity ETF (VGK - Free Report) and a 6.2% jump recorded by the currency-hedged Euro zone ETF (HEZU - Free Report) .
Investors must have remembered that the global banking sector came under stress in early phase of 2023 following failures of some banks including the behemoth Credit Suisse. While the crisis was then controlled swiftly by measures like acquisitions, investors must be interested to know that where Europe banks are standing now after one-year of crisis.
Let’s discuss of a few of key banks’ earnings results.
Inside the Results
Barclays on Apr 24, 2024 reported first-quarter net income attributable to shareholders of £1.55 billion ($1.93 billion), surpassing expectations. Analysts polled by Reuters had expected net profit attributable to shareholders of £1.29 billion for the quarter, according to LSEG data, as quoted on CNBC. Barclays reported a net loss of £111 million in the fourth quarter of 2023 due to an operational shake-up designed to lower costs and improve efficiencies.
Deutsche Bank reported 1.275 billion euros ($1.365 billion) in net profit attributable to shareholders in the first quarter, marking a 10% annual increase, on Apr 24. Analysts had forecast a net profit result of 1.23 billion euros for the period, according to LSEG data, as quoted on CNBC. Revenue increased 1% year-on-year to 7.8 billion euros, due to growth in commissions and fee income, along with strength in fixed income and currencies.
HSBC, Europe’s largest bank by assets, beat market expectations in its first-quarter earnings report released this week. Revenue came in at $20.8 billion, up 3% from the same period a year ago and compared with the median LSEG forecast for about $16.94 billion, as quoted on CNBC. Pretax profit in the January to March period came in at $12.65 billion, falling about 2% from a year ago when profit before tax came in at $12.89 billion. Still, that figure beat the $12.61 billion estimates by analysts’ forecasts compiled by the bank.
Standard Chartered posted on Thursday a 5.5% rise in its first-quarter pretax profit, beating estimates, as higher interest rates bolstered earnings at the emerging markets-focused lender. StanChart, which earns most of its revenue in Asia, said statutory pretax profit in the quarter was $1.91 billion. That compared with $1.81 billion a year earlier and the $1.39 billion average of 13 analyst estimates compiled by the bank.
ETF in Focus
Above-mentioned earnings results indicate a recovery in the European banking space. Investors can keep a close tab on the ETF EUFN.
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.
The fund’s top ETFs include HSBC Holdings (7.30%), Allianz (5.71%) and UBS Group AG (5.01%). The fund charges 51 bps in fees and yields 4.71% annually.
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Should you Buy Europe Financials ETF (EUFN) on Upbeat Earnings?
Europe financial fund iShares MSCI Europe Financials ETF (EUFN - Free Report) can gain momentum in the near term as evident from the 0.1% five-day advancements. The fund EUFN has gained 8.1% in the past three months aganinst 3.6% gains noticed in the Europe equity ETF (VGK - Free Report) and a 6.2% jump recorded by the currency-hedged Euro zone ETF (HEZU - Free Report) .
Investors must have remembered that the global banking sector came under stress in early phase of 2023 following failures of some banks including the behemoth Credit Suisse. While the crisis was then controlled swiftly by measures like acquisitions, investors must be interested to know that where Europe banks are standing now after one-year of crisis.
Let’s discuss of a few of key banks’ earnings results.
Inside the Results
Barclays on Apr 24, 2024 reported first-quarter net income attributable to shareholders of £1.55 billion ($1.93 billion), surpassing expectations. Analysts polled by Reuters had expected net profit attributable to shareholders of £1.29 billion for the quarter, according to LSEG data, as quoted on CNBC. Barclays reported a net loss of £111 million in the fourth quarter of 2023 due to an operational shake-up designed to lower costs and improve efficiencies.
Deutsche Bank reported 1.275 billion euros ($1.365 billion) in net profit attributable to shareholders in the first quarter, marking a 10% annual increase, on Apr 24. Analysts had forecast a net profit result of 1.23 billion euros for the period, according to LSEG data, as quoted on CNBC. Revenue increased 1% year-on-year to 7.8 billion euros, due to growth in commissions and fee income, along with strength in fixed income and currencies.
HSBC, Europe’s largest bank by assets, beat market expectations in its first-quarter earnings report released this week. Revenue came in at $20.8 billion, up 3% from the same period a year ago and compared with the median LSEG forecast for about $16.94 billion, as quoted on CNBC. Pretax profit in the January to March period came in at $12.65 billion, falling about 2% from a year ago when profit before tax came in at $12.89 billion. Still, that figure beat the $12.61 billion estimates by analysts’ forecasts compiled by the bank.
Standard Chartered posted on Thursday a 5.5% rise in its first-quarter pretax profit, beating estimates, as higher interest rates bolstered earnings at the emerging markets-focused lender. StanChart, which earns most of its revenue in Asia, said statutory pretax profit in the quarter was $1.91 billion. That compared with $1.81 billion a year earlier and the $1.39 billion average of 13 analyst estimates compiled by the bank.
ETF in Focus
Above-mentioned earnings results indicate a recovery in the European banking space. Investors can keep a close tab on the ETF EUFN.
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.
The fund’s top ETFs include HSBC Holdings (7.30%), Allianz (5.71%) and UBS Group AG (5.01%). The fund charges 51 bps in fees and yields 4.71% annually.