After the strong rally in bank credit spreads, we expect trading to be rather rangebound for the remainder of the year. Moody’s published its 2024 outlook for global banks, including Western European banks. The rating agency sees risk tilted to the downside amid lackluster economic growth. Nevertheless, in the base-case, loan performance will weaken only moderately, with commercial real estate being in focus. Profitability is expected to stabilize in 2024 after significant improvement in 2023, with pressure on higher pass-through rates for deposits due to lower liquidity buffers of banks. Strong internal capital generation and flat RWAs will lead to continued strong capital for banks. Banks in the EMEA region have the largest share of positive rating outlooks among Moody’s rated global banks.