“After more than a decade of post-crisis restructuring, European banks are emerging as one of the most resilient and potentially rewarding corners of global equity markets. While investor sentiment has been cautious, hard numbers tell a different story: stronger profitability, clean balance sheets, robust capital positions and shareholder-friendly capital-return policies. Nevertheless, valuations across the European banking sector remain below those of the broader market. 1. European banks are no longer the fragile institutions of the 2010s. They are well-capitalized, increasingly digital and benefit from structural tailwinds, including more fiscal spending. The combination of profitability, efficiency, prudence and progress stands in stark contrast to the legacy image of underperforming and overregulated lenders.”
Morten W. Langer
