Deutsche Bank sees 12% Q2 European earnings growth, led by energy sector

According to CNBC, Deutsche Bank analysts said consensus forecasts point to 12% year-on-year earnings growth in Europe for the second quarter and they expect results to come in above expectations, projecting 14% growth. They said the energy sector is expected to drive most of the gains, with earnings seen up 84% year-on-year after Brent crude averaged $97 a barrel in the quarter, a 45% increase from a year earlier; Brent traded near $73 a barrel on Monday. Excluding energy, the analysts put earnings growth at about 3% year-on-year, with chemicals and industrials expected to show strong growth, banks projected to slow to mid-single-digit growth before a recovery in H2, health care likely to post a third straight quarter of declines, and autos projected to record their first quarter of positive earnings growth since 2023.