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Banco Santander Santiago, Credit Suisse Group, Deutsche Bank AG, HSBC Holdings Plc and Banco de Chile


Published on 2009-12-22 14:05:54 - Market Wire
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CHICAGO--([ BUSINESS WIRE ])--Zacks.com releases the latest Industry Outlook. Today, Zacks Equity Research discusses the Non-U.S. Banks Industry, including Banco Santander Santiago (NYSE: [ SAN ]), Credit Suisse Group (NYSE: [ CS ]), Deutsche Bank AG (NYSE: [ DB ]), HSBC Holdings Plc (NYSE: [ HBC ]) and Banco de Chile (NYSE: [ BCH ]).

A synopsis of today's Industry Outlook is presented below. The full article can be read at [ http://www.zacks.com/stock/news/28547/Non-U.S.+Banks+Stock+Review+-+Dec.+%2709 ].

Non-U.S. Banks Stock Review

The Institute of International Finance, which represents major financial institutions in 70 countries, said in a report that the firms are learning from the crisis. But there are several issues worth considering when investing in these banks:

First, investment in non-U.S. ADR bank stocks entails foreign currency risk. Currently, the U.S. dollar is remarkably volatile against many foreign currencies, which tends to depress the share performance. Importantly, we expect volatility in the stock prices to continue, reflecting economic uncertainty in the coming months and headline risk.

In all, a key determinant for quick recovery will be the quality of risk analysis and how well risk awareness is built into decision-making and incentive policies. So we believe that accumulating larger capital buffers over the cycle and reducing pointless complexity in business will be crucial for the better performance of non-U.S. banks.

Specific banks that we like with a Zacks Rank of 1 (Strong Buy) include Banco Santander Santiago (NYSE: [ SAN ]) in Chile, Credit Suisse Group (NYSE: [ CS ]) in Switzerland, Deutsche Bank AG (NYSE: [ DB ]) in Germany, HSBC Holdings Plc (NYSE: [ HBC ]) and Banco de Chile (NYSE: [ BCH ]).

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting [ http://at.zacks.com/?id=2679 ].

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