By Justin Bisseker, European Banks Analyst, Schroders
After a tough start to 2016, many European banks now look extremely attractively valued. However, investors must tread carefully as some banks still carry elevated risks.
2016 has certainly started in an “interesting” fashion for investors in bank shares – we are only one month into the year and already the FTSE Pan-European banks index is down some 14% compared to the broader market down 6% (as at 29 January 2016). Relative to the broader equity market, the pan-European banks remain below the Global Financial Crisis lows of early 2009 and are now even below the euro crisis lows of mid-2012. Should we be panicking? No, but as investors we need to continue to tread carefully...
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