The largest banks in Europe are set to report their earnings for the second quarter (Q2) of 2024 following last week's announcement from the European Central Bank (ECB) that it would not change its interest rates. 

It is understood that the ECB is also considering interest rate cuts by September. 

Despite this, the banks' earnings proved to be surprisingly robust and that their shares continue to rise. 

Analysts from JP Morgan told Reuters that the sensitivity of European banks to rates remained low despite customers shifting to cash and banks' net interest income (NII) remaining strong. They added that the experience of banks in the United States reporting this month signaled that there was "no tolerance" for NII disappointment. 

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High Earnings from European Banks Expected

It is understood that the Eurozone's largest banks, Spain's Santander, France's BNP Paribas, Germany's Deutsche Bank, and Italy's UniCredit, would report their Q2 earnings on Wednesday (July 24). 

On the other hand, Sabadell, which has been under threat of a hostile takeover by rival bank BBVA, would be reporting on Tuesday (July 23) and would be closely monitored as it sought to convince shareholders that it was better off alone. 

Meanwhile, British bank Lloyds and NatWest would report its earnings Friday (July 26), while Barclays and HSBC would report their quarterly earnings next week. 

RTE also reported that some of the Irish banks, such as the Bank of Ireland, are also expected to report its earnings next week.

S&P European banks analyst Elena Iparraguirre said that its forecast was that profitability is to remain "quite solid," and that she would be watching the "magnitude" of the NII compression and its evolution from one quarter to another. 

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