In The Press… Why do banks suffer from heavy discounts on the stock markets?
Patrick Jenkins, FT, Wednesday, December 5, 2023: In this interesting article, Patrick Jenkins wonder why price-to-book ratios are generally rather low in the European banking sector. He argues that under a favourable scenario, “Europe’s banks may one day make it back to book value, finally expunging the zombie phenomenon”. In a letter to the FT, that was published, we added that banks’ high cost of capital may also be related to shareholders’ knowledge that they would be the first victims […]