1702 GMT - Shares in European banks sell off under a trio of pressures, Federated Hermes analyst Filippo Alloatti says. Investors are concerned about banks' lending to software companies and the competition threat AI poses directly to banks' operations. Moreover, some traders will be profit-taking following banks' strong run so far this year, Alloatti says. Banks active in both commercial and investment banking--like Deutsche Bank, BNP Paribas and UBS--are most likely most exposed to software and credit risks, Alloatti says. If loans to private credit funds or loans direct to software companies turn sour, banks will be left holding devalued assets. A basket of European banking stocks closed down 1.7%. BNP Paribas fell 1.4% while Deutsche dropped 1.7%. UBS closed 1.3% lower. (josephmichael.stonor@wsj.com)

(END) Dow Jones Newswires

February 24, 2026 12:03 ET (17:03 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.