Finance sector

About the Finance sector

The finance sector groups banks, insurers, asset managers, payment networks, stock exchanges and other financial services companies.

Banks earn mainly from the difference between lending and deposit rates, so their profits are closely tied to interest rates and credit quality. Insurers depend on underwriting discipline and investment returns, while asset managers and exchanges follow market activity. Financial stocks often pay regular dividends and are a large part of many European and emerging-market indices.