Barclays has identified ten European diversified financials stocks as overweight in its August 2026 monthly chartbook, citing earnings revisions rather than valuation expansion as the key driver of returns across the coverage.
The sector has broadly tracked the broader SXXP over the past month but continues to underperform banks on both a one-month and year-to-date basis. Valuations remain flat year-to-date and in line with five-year historical multiples, according to the analysis.
Among the upgraded names, 3i Group delivered a positive Q1 FY27 update, with its net asset value rising 3% to 3,131p. The group reported Q2 like-for-like sales growth of 3.6%, an improvement on prior trends, though full-year guidance was unchanged. Deutsche Boerse’s July volumes were flat month-on-month but up 3% year-on-year, while interest rate volumes fell 21% month-on-month but rose 23% year-on-year, reflecting normalization from elevated March peaks.
Partners Group posted gross inflows of $16 billion in the first half, 14% ahead of consensus, though net AUM growth was constrained by elevated redemptions, FX headwinds and weaker investment performance. Full-year 2026 fundraising guidance was reiterated, while H1 performance fee guidance was set below 20%, compared with Barclays’ estimate of 18.9%. Investors are expected to focus on evergreen redemption trends at the 1 September H1 results.
CVC Capital Partners posted a solid first half, with revenues 4% ahead of expectations and FPAUM in line with forecasts, while earnings upgrades of up to 5% were applied. The group is positioned to benefit from a healthy European CLO market, providing support to carried interest and fundraising prospects. ICG PLC also delivered another positive quarter of fundraising, aiding the alternatives sub-sector’s re-rating after months of de-rating.
London Stock Exchange Group’s July orderbook trades declined 3% month-on-month but rose 34% year-on-year, part of a broader structural volume growth trend despite lower volatility metrics. The company drew a supportive conference call following H1 results, though EPS upgrades remained modest due to limited guidance changes.
OneSavings Bank was the weakest performer on results day, falling more than 10% as funding costs continued to weigh on returns. Fixed-term deposit flows remained elevated in July, and one-year deposit pricing across the specialist lender space stayed competitive against high-street peers. Avanza Bank’s average trades per customer per day fell sharply month-on-month in July, with year-on-year momentum turning negative, though Barclays attributed the softness to seasonal factors and easing market volatility rather than structural deterioration.
flatexDEGIRO’s July volumes declined 20% month-on-month, in line with broader direct-to-consumer platform softness driven by seasonal factors and lower volatility, though the year-on-year decline was limited to 1%, outperforming peers Avanza and Nordnet.
