Strong Revenues Driving European Bank Earnings

The transcript discusses the performance of European banks, highlighting a better beat-to-miss ratio driven by higher revenues, particularly from fees in asset management and private banking. It notes increased costs as a sign of management confidence, with expectations of rising net interest income. The discussion also covers the impact of the Asia Pacific region on Credit Suisse and UBS, and the reinstatement of dividends by banks like UniCredit and Commerzbank. Concerns about Italy's political situation are raised, with potential market impacts. Future projections suggest a significant increase in dividend yields, reaching levels not seen in decades.

What has been a key driver of the recent improvement in European banks?

• Reduced competition

• Lower interest rates

• Higher revenues and fees

• Increased government subsidies

Which region has significantly supported Credit Suisse and UBS?

• North America

• Asia Pacific

• Middle East

• Africa

What is a major concern regarding the upcoming Italian election?

• High inflation rates

• Decreasing foreign investments

• Potential coalition with the Northern League

• A clear majority party is expected

What is the expected dividend yield in Europe by 2019?

• 5.5%

• 10%

• 7%

• 3%

How does the current European dividend yield compare to the past three decades?

• It is the lowest

• It is the same

• It is below average

• It is the highest