What investors are watching for as UBS prepares to kick off Europe’s bank earnings

What investors are watching for as UBS prepares to kick off Europe’s bank earnings

The Deutsche Bank AG logo sits on the bank's headquarters, right, as they stand with other financial center skyscrapers during sunset in Frankfurt, GermanyBloomberg | Bloomberg | Getty ImagesLONDON — With European lenders set to begin reporting fourth-quarter and full-year earnings next week, analysts are expecting a resilient performance led by strong investment banking revenues.Banking stocks have made a significant comeback of late, with the pan-European Stoxx 600 banking index up around 40% since the lows registered at the start of the fourth quarter of 2020.The resurgence has been driven primarily by positive news on Covid-19 vaccines and an easing of restrictions on dividends and share buybacks from regulators.A spike in trading and investment banking revenues helped lenders around the world to report solid earnings in the third quarter of 2020, benefiting from increased trading volumes and market volatility since the onset of the coronavirus pandemic.Earnings this week from the Wall Street banks have indicated that the sector could be set for a strong season, with Morgan Stanley beating expectations on Wednesday with a 51% increase in net profit for the fourth quarter. Goldman Sachs and JPMorgan had already posted earnings beats on the back of robust trading and investment