Against expectations, European banks are thriving
Many are now ripe for a takeover
![The Unicredit SpA headquarters in Milan, Italy](https://www.economist.com/cdn-cgi/image/width=1424,quality=80,format=auto/content-assets/images/20240511_FNP003.jpg)
In 2020, when BBVA and Sabadell abandoned merger discussions, it was difficult to find investors with anything positive to say about European banks. A decade of near-zero interest rates, stiff regulation and anaemic economic growth had made them unprofitable and unattractive. The two Spanish lenders were no exception. BBVA had a market value of €26bn ($32bn), less than 40% of its 2007 peak. At €2bn, Sabadell was worth only a fifth of the accounting (“book”) value of its equity.
This article appeared in the Finance & economics section of the print edition under the headline “Bona fide”
Finance & economics May 11th 2024
- What Xi Jinping gets wrong about China’s economy
- What would get China’s consumers spending?
- How Ukrainian farmers are using the cover of war to escape taxes
- Why the global cocoa market is melting down
- Against expectations, European banks are thriving
- Banks, at least, are making money from a turbulent world
- Could America and its allies club together to weaken the dollar?
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