Bloomberg News

Komercni Gains on European Bank Upgrade at Bank of America

February 24, 2012

Komercni Banka AS (KOMB), the Czech unit of Societe Generale SA (GLE), extended the best weekly gain in three as Bank of America Corp. raised its outlook for the European banking industry to “overweight” from “neutral.”

Komercni climbed 1.3 percent to 3,640 koruna by the close in Prague. The shares added 1.8 percent this week, the biggest five-day jump since the period ended Feb. 3. Societe Generale rose 5.8 percent in Paris to 24.325 euros, the biggest intraday gain in a week.

Improving global economic signals in the past three months may mean better growth for banks, which could prompt analysts to increase earnings-per-share estimates for lenders, Gary Baker, a London-based analyst with Bank of America, said in an e-mail today.

Banking shares in the euro-area also climbed today on reports the lenders may tap the European Central Bank for 470 billion euros ($629 billion) in three-year funds for allotment on Feb. 29, according to the median of 28 estimates in a Bloomberg survey.

To contact the reporter on this story: Douglas Lytle in Prague at dlytle@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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