European bank stocks have up to 18 percent price potential

The Frankfurt bank towers

European banks are once once more finding the goodwill of analysts and investors. Despite progress, Deutsche Bank and Commerzbank are not among the favourites.

(Photo: dpa)

Frankfurt After gloomy years, Europe’s banks are slowly but surely heading towards better times. This expectation is already reflected in the stock markets. It might be confirmed when the continent’s big money houses present their results in the coming days. Deutsche Bank will start on Thursday.

While the stock exchanges got off to a bad start at the beginning of the year, European bank stocks proved to be much more robust. Its index, the Stoxx 600 Banks, has risen by three percent since the beginning of the year, while the broad Stoxx 600 Index has fallen by around seven percent.

In recent years it has mostly been the other way around. Since 2017, the industry barometer for banks has lost ten percent in value, while at the same time prices on the broader market have climbed by more than 30 percent.

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