European Banks Valuation Weekly: 12 May 2026 edition

Research evidence excerpt

European Banks Valuation Weekly: 12 May 2026 edition

Deutsche Bank

Research

Emerging Europe Industry Date

Europe 12 May 2026

European Banks

Banks Periodical

Banks Valuation Weekly

12 May 2026 edition

Benjamin Goy

European banks performed in-line with the market YTD Research Analyst

European Banks Valuation Weekly is our product tracking trends in valuations

Atul Hanamante

across our covered European Banks. DB European bank shares are up 5% YTD,

Research Associate

implying in-line performance relative to the market. On 2027E, our covered

European banks universe is trading at 1.5x P/TBV and 9.1x P/E (c.34% discount to Robert Noble

the European market) for an RoTE of c.16.3% and total capital-return yield of 8.6% Research Analyst

(o/w 5.7% is in cash dividends and the rest in share buybacks). Alfredo Alonso

Research Analyst

DB’s 16th annual Global Financial Services Conference – please join us from 27 Giovanni Razzoli, CFA

May to 28 May in New York; 80+ companies from Europe and the US. More details Research Analyst

here.

Sharath Kumar

DB product highlights

Marlene Eibensteiner

n Margin Monitor: May 2026: margin benefit becomes visible: With March

2026 data now available, we update our Margin Monitor for the first quarter

of 2026. Back-book margins grew 14bps / c.6.0% YoY and loan growth Gunjan Bhatt

accelerated again to +3.2% YoY in March, deposit growth remains higher Research Associate

and deposit margins are more attractive now (Chart of the Month, Figure

Rishika Garg

2).Euro Area net interest income grew QoQ (+2.9%). For the quarter,

momentum remained largely negative across euro area countries, with an

uptick in net interest income in many countries. Link Miriam Killian

n UK banks: Cautious Optimism: UK banks generate substantial amount of