Saxo Group Videos

Garnry: Why my money's on two German banks

European banking stocks have rallied this Monday off the back of the ECB’s balance sheet test. As the results were better than expected, it’s perhaps not really a surprise. But Saxo’s Peter Garnry says within the Eurozone, there are two tales to tell.

He says it’s a positive story that not a single Spanish bank failed the test and that in Germany Commerzbank also passed. But not such good news in Italy where Banca Monte dei Paschi di Siena needs to raise an additional EUR 2.1 billion. On the other hand, UniCredit, Italy’s biggest lender, did pass.

Peter highlights two German banks that investors should look at. Commerzbank (CBK:GR) has risen almost 15% this month and Deutsche Bank (DBK:GR) 8%. He thinks there are more gains to be had.

03:29 minutes
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