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Why is Deutsche Bank more bullish on FTSE 100 earnings after H1 results?

Deutsche Bank turned more bullish on FTSE 100 earnings after first-half results showed broad-based strength and upside surprises across the index. The bank raised its full-year earnings growth forecast to 18%, citing 17% year-over-year H1 earnings growth, a 21% sequential increase, and a 5% beat versus consensus, with 78% of companies outperforming expectations. Energy was the biggest driver, but non-energy earnings also proved more resilient than feared, while sales growth hit 12%, its fastest pace since 2023. Guidance trends were constructive too, with more companies raising outlooks than cutting them. The update supports a positive earnings backdrop for UK equities and suggests higher index targets may follow if current momentum continues.

Category

UK 100

Sentiment

Bullish

Event

Institutional outlook

Reading time

1 min