(Bloomberg) -- Intesa Sanpaolo SpA became the European Union’s largest lender by market value for the first time, overtaking Banco Santander SA after a surge in the Italian bank’s share price this year.
At €69.6 billion ($77.1 billion), Intesa’s market capitalization is now slightly more than Santander, which held top spot on Monday, after declines in both stocks on Tuesday. The banks are both similar in value to France’s BNP Paribas SA, the region’s long-time leader.
Intesa’s results have been resilient this year and it has also raised guidance. Chief Executive Officer Carlo Messina is counting on growth in insurance, asset and wealth management to lift fee income as the tailwind from high interest rates starts to fade.
Meanwhile BNP Paribas has seen its stock hurt by political turmoil in France following President Emmanuel Macron’s decision in June to call snap parliamentary elections.
On Tuesday, Morgan Stanley analysts downgraded European banks to in-line from attractive, citing weak macroeconomic data and falling central bank rates weighing on net interest income.
--With assistance from Joe Easton and Sonia Sirletti.
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