BUZZ-BofA sees solid Q2 operating trends in Spanish banks, cuts BBVA to 'neutral', Unicaja to 'underperform'

Bank of America Corp
Banco Bilbao Vizcaya Argentaria, S.A. Sponsored ADR

Bank of America Corp

BAC

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Banco Bilbao Vizcaya Argentaria, S.A. Sponsored ADR

BBVA

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** BofA Global Research sees solid operating trends in Spanish banks in Q2 with NII growing quarter on quarter courtesy of rates and deposits

** The brokerage also sees fees for Q2 +2-3% ahead versus consensus, with fees positively affected by markets and activity; Cost of risk still benign despite macro projections update

** It cuts BBVA BBVA.MC to "neutral" from "buy" with Turkey's normalization delayed which leads to limited visibility on potential outcomes and range-bound valuation

** It downgrades Unicaja UNI.MC to "underperform" from "neutral" as valuation has gone too far and Earnings Per Share (EPS) now offers no scope for further upward revisions

** It adds that Caixabank CABK.MC, the only "buy"-rated in the sector, still offers the best combination of NII gearing, non-interest income growth and use of capital among the domestics


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