Kian Abouhossein, Head of EU Banks Equity Research at JPMorgan, discusses his top European banking picks for 2026 and outlines why he's keeping away from Sweden's lenders.

Zürich

JPMorgan has outlined its top European bank stock picks for 2026, favoring institutions such as Deutsche Bank, UBS, Barclays, and Intesa. The analysts note that UK banks like Barclays are trading at low valuations, while Swedish banks are less attractive due to higher prices and limited earnings growth. 

The report also highlights that major M&A activity in European banking is unlikely in the near future, with Italy being a possible exception. Concerns were raised about European banks lagging behind US peers in digital innovation, as cost discipline may limit investment in new technologies such as digital money and tokenized deposits.

These are JPMorgan's top European bank stocks for 2026

We still like some of the IB geared plays and they have some good cost measures etc. such as Deutsche Bank UBS. We like the UK which is a little bit controversial in this environment from a macro perspective clearly. We like Barclays which is trading at roughly seven times earnings one of the cheapest stocks. Just to put in context Goldman's trading at 15 times earnings. Yes we believe there should be discount to the US IBs but it's still too cheap in our view. Net West a pure retail bank in the UK making 18 percent returns very healthy environment. But also some of the southern Europeans like Intesa are on our list of preferred stocks. And then your least favorite ones. It looks like you're not taking on the Swedish banks. You see you're underweight on Handelsbank and Nordea and SCB. Can you just flesh out for us what that's the case. Yeah from our perspective here is a key issue is that they're quite expensive. The total yields that they pay out are more limited. And this from our perspective just more limited earnings growth. So why should we pay a premium especially when European banks really post GFC got the act together and improved the operating leverage cleaned up their operations and the gap between the quality Swedish banks and Europeans in continent has materially deteriorated declined. Let me ask you about M&A. There's been a lot of M&A this year some successful some less successful but we all hear that scale is important to be able to do the tech investment etc. So how much more of M&A are we going to see potentially in Europe going forward given the you know some of the failures that we've seen this year. I think Italy in particular will be probably still an area to look for M&A. But really in Europe it's going to be more limited. I really don't see where the targets are in terms of the listed companies that we cover. And I also feel that actually if you take a step back a lot of M&A transaction have failed. And that's unfortunate. But I just not in the camps that we're going to see material M&A in European banks. Twenty six funny digital money. You were telling me that the European banks are a little bit behind when it comes to this. But there's still a question whether this is a risk or an opportunity going forward. So where do we stand there. Yeah. In our views we clearly as investors want limited cost growth and the banks are very cost conscious. They're growing cost at 2 to 3 percent. Very disciplined. Much more than the American banks where we see 5 to 10 percent cost growth. The question is is it right in the long term. Should we be more aggressive in investing especially around digital money stable coins tokenized deposits etc. Considering that there's a lot of changes happening in the payment space. And our concern is just as we've seen in the auto industry that maybe the European banks could lag behind on a five year view 10 year views American peers. And that is a real concern.

President Trump approved a 28-point plan to end the Russia-Ukraine war, a senior White House official confirms to CBS News. Ramy Inocencio has the latest.

Washington

Ukraine Invasion

Trump approved 28-point plan to end Russia-Ukraine war

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Kyiv

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All 267 people on board a South Korean passenger ferry that ran aground off the southwestern tip of the Korean peninsula on Wednesday (November 19) have been rescued, in an incident that revived memories of the major ferry disaster in 2014 in which 300 people died.

Mokpo-si

Ferry runs aground off South Korea, crew negligence suspected

On Wednesday, U.S. President Donald Trump signed the bill that forces the Justice Department to release the files from its investigation into the late sex offender Jeffrey Epstein. The bill was passed by the U.S. House and Senate on Tuesday.

Trump signs bill to release Epstein files

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Harvard University is opening a new inquiry into faculty connections with convicted sex offender Jeffrey Epstein. Cam Srivastava, college administration reporter for The Harvard Crimson, joins CBS News with more.

Cambridge

Harvard announces new probe into faculty ties to Jeffrey Epstein

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An Israeli strike on the Ain al-Hilweh Palestinian refugee camp in southern Lebanon killed 13 people and wounded several others, the Lebanese Health Ministry said Wednesday. The Israeli military said it struck Hamas militants who it said were operating in a training compound there.

Beirut

Middle East Conflict

Israeli strike on Palestinian refugee camp in Lebanon kills 13

The Epstein files bill is expected to reach President Donald Trump's desk for his signature on Wednesday (November 19). CBS News' Taurean Small reports.

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San Francisco

Microsoft, Nvidia to invest up to $15 billion in Anthropic

Hamas rejects the US-drafted UN resolution for a Gaza ceasefire and international stabilisation force.

New York

UN Security Council vote: Hamas rejects Gaza 'peace resolution'

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Johannesburg

South Africa readies for G20 despite U.S. boycott

At least one person is dead and three others were injured after an attack in the West Bank, Israeli forces said. Meanwhile, the United Nations Security Council backed the U.S. plan for Gaza. CBS News' Ramy Inocencio has the latest.

Jerusalem

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U.S. President Donald Trump will host Saudi Crown Prince Mohammed bin Salman at the White House, his first visit since Washington Post journalist Jamal Khashoggi was killed in 2018. The crown prince has denied any involvement.

Saudi Crown Prince Mohammed bin Salman visiting White House

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The U.K. government has proposed a major overhaul of its asylum rules, making it easier to deport people and quadruple the amount of time it takes to become a permanent resident.

London

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Virginia

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President Trump now says Republicans should vote to release all of the files related to the federal investigation into convicted sex offender Jeffrey Epstein. CBS News' Olivia Rinaldi and Nikole Killion have the latest on what could happen next.

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Poland's Prime Minister Donald Tusk has called an explosion on a railway line “an unprecedented act of sabotage.” Donald Tusk did not say who he believed had carried out the attack, but a government minister said "foreign intelligence agencies" were responsible.

Warsaw

Railway line blast in Poland ‘unprecedented act of sabotage’

Ukrainian President Zelenskyy signed a landmark deal in Paris on Monday to buy 100 Rafale jets, drones, and air defense systems from France.

Paris

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The Federal Aviation Administration ended mandated cuts in domestic flights at 40 major U.S. airports, easing restrictions that had been imposed over air traffic control concerns during the federal shutdown.

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Israeli Prime Minister Benjamin Netanyahu vowed to oppose any attempt to establish a Palestinian state, a day before the UN Security Council will vote on a U.S.-drafted resolution on Gaza that leaves the door open to Palestinian independence.

Tel Aviv-Yafo

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A Bangladesh court sentenced ousted Prime Minister Sheikh Hasina to death for crimes against humanity on Monday (November 17), concluding a months-long trial that found her guilty of ordering a deadly crackdown on a student-led uprising last year.

Dhaka

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President Donald Trump now appears to support the release of all Jeffrey Epstein files as the House of Representatives readies for a vote on the matter. CBS News' Natalie Brand reports.

Breakdown