Cheap European Banks: Forget Deutsche Bank, Buy Quality With BNP Paribas

About: BNP Paribas SA (BNPQF), DB
by: Hampstead Investor
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Hampstead Investor
Corporate contributor, banks, oil & gas, dividend investing

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