BNP Paribas and UniCredit, two banks that suffered a poor April, have been selected by banking analysts at Nomura as stocks set to outperform the European banking sector – with the Japanese bank downplaying political fears in the region.

BNP Paribas, which is set to announce its first quarter results on Friday, and UniCredit, which reports on May 10, are undervalued by the market and will outperform the banking sector in the short-term, according to a note published today by the Japanese bank.