Skip navigation
Watchlist Sponsored By :

Current DateTime: 02:16:17 16 Nov 2009
LinksList Documentid: 24355697

FEATURED QUIZZES


Current DateTime: 02:16:17 16 Nov 2009
LinksList Documentid: 33793611
  • How Much Do You Know About Green?

      Green has become part of our everyday lives. Green is everywhere-- energy, clothing, food, housing, transportation. It's a big business and a global business.

  • The Billionaire BFF's

      Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?

  • The Many Myths of Coca-Cola

      Can you tell which statements are true, and which ones are just rumors?


Current DateTime: 02:16:17 16 Nov 2009
LinksList Documentid: 24890560
  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

  • Alternative Investing

      Stocks and bonds? Sure. But it's a big world out there for investors.

powered by digg
Time to Dip Into Europe's Bank Stocks?
By: Robin Knight, Assistant Web Producer | 25 Feb 2008 | 11:54 AM ET
Text Size

Bullish comments from the Qatari investment fund over the future of European banks show a return of confidence in the depressed sector and may herald the beginning of an era of buying opportunities, analysts told CNBC Monday.

The fund is planning to invest between $10 billion and $15 billion over the next two years in banks and prefers the European ones to their US counterparts, Qatar’s Prime Minister Sheikh Hamad bin Jassim al-Thani told Reuters.

"Let's face it, the banks are extremely depressed right now … the reality is that they can only really go up," Ralph Silva, research director from TowerGroup, told "European Power Lunch."

European banking stocks rallied Monday, with the UK's Alliance & Leister soaring 8.8 percent and Royal Bank of Scotland gaining over 5 percent. France's Credit Agricole and Germany's Commerzbank also jumped.

The sector has been heavily sold off since last summer, when subprime-related losses started to filter through to balance sheets.

The EuroStoxx Banking Index has lost a quarter of its value since the start of June, meaning that investors can obtain far more stocks for their capital now compared to six months ago, but fear of further falls has kept many on the sidelines.

Shaken but Not Stirred

One reason to expect upside in the European banks is their ability to manage writedowns reasonably, Simon Adamson, analyst from CreditSights, told CNBC.com.

"The market has underestimated the resilience of a lot of European banks … we had some large writedowons and impairment changes, most of the banks have been able to absorb them with relatively little damage," Adamson said.

But it's still too early to say the worst is over, Adamson warned, and 2008 is still going to be a very tough year for banking.

Writedowns have been rife in the recent reporting season for the likes of UBS, Barclays and Societe Generale, and this has amplified uncertainly about the banks' prospects.

Echoing the Qatari SWF's opinion, analysts said U.S. banks are still too laden with losses from the housing market collapse to be considered ready for investment.

© 2009 CNBC.com
Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • CNBC's Jim Goldman asks: Has the sun begun to set on Twitter? Data suggests its best days are over.
  • Everyone wanted a piece of Madoff's "Bullship"--the famous buoy sold for $7,500 at auction. You won't believe these prices.
  • De Loach Vineyards is selling its pinot noir the old fashioned way, helping to cut energy and transportation costs.
  • Why are the Chinese concerned about the progress of U.S. health care legislation?
  • Snoop Dogg
  • CNBC's Maria Bartiromo talks to rapper Snoop Dogg about brand identity in both business and music.
ADD COMMENTS
Remaining characters


Current DateTime: 01:12:16 16 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 10:28:53 16 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 01:49:43 16 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 10:42:55 16 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters