Old meets new economy: AI boom to supercharge European banks' rally
Banks are 'cost winners' of AI boom, BlackRock says European banks remain undervalued, despite a strong rally AI could add $340 billion annually to global banking, McKinsey LONDON, Dec 15 (Reuters) - After a stellar 2025, investors expect shares in European banks to keep heading higher in 2026, supported by strong earnings and, crucially, cost savings stemming from artificial intelligence. As fears of a recession and interest rate cuts from the European Central Bank have subsided, investors have turned even more positive towards European banks, revising up their expectations for the sector, despite a complicated backdrop. Meanwhile, AI https://www.reuters.com/technology/artificial-intelligence/ has emerged as a new force drawing investors to European lenders' shares, partly because a dearth of technology companies in the region has forced many to hunt for AI beneficiaries in old-economy markets. Banks have started to use AI to improve operational efficienc...