European banks have surged +45.2% YTD through August 2025, dramatically outpacing both the broader European market (+8.6%) and U.S. banks (+13.9%). Investors now face a key question: can this momentum last?
In this exclusive CFRA Thematic Research report, Firdaus Ibrahim, CFA, examines the sector’s outlook and whether valuations near 1.2x P/B remain justified amid robust profitability, strong capital positions, and growing non-interest income streams. The research also highlights CFRA’s top picks, including Intesa Sanpaolo, Santander, UniCredit, BBVA, and Standard Chartered, alongside scenario analyses (base, bull, and bear cases) that model the trajectory into 2026.
Key insights you’ll gain:
- Why European banks may continue outperforming their U.S. peers.
- How resilient loan demand and stabilizing net interest margins support earnings.
- The role of fee income resurgence in revenue diversification.
- Which banks are best positioned for growth — and which face structural risks.
- What macro and regulatory factors could drive re-rating opportunities toward 1.4–1.5x P/B.
Stay ahead of the markets with CFRA’s deep dive into fundamentals, risks, and stock implications across leading European banks.
Download the Full Report to access CFRA’s complete analysis, bank-specific recommendations, and scenario forecasts.