European banks outperformed consensus expectations for the 15th consecutive quarter over the first three months of the year, Jefferies analysts have pointed out.
Aggregate pre-tax profits came in 9% above consensus, driven by higher revenues and lower credit costs, analysts said in a note.
This was as 34 banks across the sector outdid expectations, with Lloyds Banking Group PLC (LSE:LLOY), Svenska Handelsbanken and Piraeus Bank marking the three to miss out.
Lloyds’ profit, of £1.63 billion, was 2% below consensus, as net interest income and revenues fell short of expectations.
“Once again, this earnings season was characterised by a wide dispersion in net interest income performance,” Jefferies said.
“We continue to see pressure on margins and muted lending growth [and] activity continues to impact,” it added, as central bank rate cuts begin to be priced in.
Standard Chartered, Societe Generale and BNP Paribas were among those to lead the way in terms of profit beats in the meantime.
Though positive profit-beats were “decelerating” against highs in 2022-23, according to Jefferies, “revenue and pre-provision profit continue to surprise”.
“[This confirmed] once again the strong earnings momentum for the sector.”