LIVE MARKETS-Banks beat on pre-tax profits for 18th straight earnings season

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BANKS BEAT ON PRE-TAX PROFITS FOR 18TH STRAIGHT EARNINGS SEASON

It was another strong quarter for bank results and Jefferies have a punchy stat in a note out Monday.

They find that of the 28 banks they cover - the ones you'd expect - pre-tax profits have beaten street estimates (excluding one-offs in late 2023) for the past 18 results seasons.

To be fair, the beat is slowing - 5% this season versus 10% in Q2 and 8% in Q3 - but it's still striking.

What are analysts missing?

This time round, better than expected net interest income was the factor.

In Jefferies view, some were expecting "non-linear" rate cuts from the ECB, which led to "an excessive downward adjustment in net interest income."

As it turned out, the ECB has been very 'linear' in its rate cuts with a steady series of 25 basis point rate moves since June last year.

(Alun John)

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