Eurozone banks have had a poor year in 2018, with their index down 27%.
Deutsche Bank is now trading at 0.28 times book value. It can be a fantastic recovery story, but I think it is unlikely due to its poor business mix.
I prefer BNP Paribas, a profitable bank paying a generous and growing 7.9% dividend yield and trading at a 38% discount to tangible book value.
The sharp fall in bank stocks in the last few weeks has created great opportunities, particularly within European names trading at a further discount to US peers. I like to invest in banks when