Euro area bank valuations reach levels unseen since financial crisis

Analysts from the European Central Bank (ECB) have detailed the drivers behind the dramatic surge in the market value of euro area banks seen throughout 2025.

In their analysis, the ECB’s Dejan Krusec, Riccardo Meli and Csaba More noted that market valuations for banks across the euro area experienced a sharp climb between the start of 2025 and the early months of 2026, reaching a point last witnessed before the global financial crisis....