According to Jinshi, Deutsche Bank said in a research report that the interest rate cut cycle will help French banks accelerate fee income and loan growth, and support net interest income in the longer-term deposit market and consumer finance sectors.
Deutsche Bank highlighted that French banks have a more diversified model and are more procyclical than their European peers. Analysts Sharat Kumar and Benjamin Goy noted that BNP Paribas and Credit Agricole are expected to outperform.
They expect BNP Paribas to improve returns and Credit Agricole to remain high, but they are less positive on Societe Generale due to its heavy exposure to the underperforming French retail sector.
