19 Dec 2023 | Financial Services | infographics

Banking Horror?- EU Banks Remain Troubled Undervalued Entities

European banks, persistently trading at a 73% discount below book value for over a decade, present a challenging "zombie" scenario despite profitable margins fueled by low interest rates. Although shareholder payouts exceed 15%, skepticism about sustainability keeps valuations depressed. Previous breakup endeavors, typical for undervalued firms, have faltered in the banking sector. The EU and UK encounter unique hurdles—slow growth, volatile policies, market fragmentation, and tech investment gaps. While solid bank fundamentals offer optimism, cautious investors yearn for stability and improved perceptions to rejuvenate European banks and potentially eliminate their "zombie" status. Explore Jasper Colin's latest study on leveraging data-driven research, AI-driven due diligence, and technology to uplift EU banks from this predicament.