Deutsche Bank has issued buy recommendations for four major Spanish lenders—BBVA, Santander, Bankinter, and Sabadell—as the sector prepares for its second-quarter earnings season.
The German bank views the upcoming reporting period as "constructive," with expectations that results will largely meet consensus without significant negative surprises.
The analyst note highlights that concerns regarding the conflict in Iran remain "quite limited" for these institutions, suggesting that geopolitical headwinds are not expected to materially disrupt near-term profitability.
This stance provides a counter-narrative to broader market anxieties about Middle East tensions impacting European financials.
Santander is scheduled to report its results on Tuesday, kicking off a busy week for the Spanish banking sector.
The timing of the upgrade positions investors to potentially benefit from any positive momentum generated by the earnings releases.