The Renaissance of European Bank Stocks

Yanko Hristov, Head of Institutional Sales and Business Development at Alaric Securities on “Business Start”

Several factors have contributed to the rise in European bank stock prices. Since 2020, many banks have replaced their CEOs. Such changes take time to yield results, but we are now seeing the benefits of sound management. The shift of capital toward European stocks and the rise in interest rates have also played a positive role. This was stated by Yanko Hristov, Head of Business Development and Sales at Alaric Securities, on the program Business Start on Bloomberg TV Bulgaria, hosted by Hristo Nikolov.

The guest commented on the recent strong performance of European bank stocks. Since the beginning of 2025, shares of the French bank Société Générale have risen by 62%, Germany’s Commerzbank by 48% during the “Business Start” program, and Spain’s Santander by 46%. Just a few days ago, Santander’s market capitalization reached €100 billion, making it the largest publicly traded European bank by this metric. Shares of Italian lenders such as UniCredit and Intesa are also on an upward trend.

“Europe had fallen into a lethargy and needed a wake-up call,” Hristov said. “The EU isn’t as far behind as many people think. The removal of the ‘debt brake’ in Germany is giving a boost to all European stocks. Bank results are improving year over year.”

After the elections, Germany embarked on a path that will once again make it the engine of the European Union. This had an immediate impact on the shares of Deutsche Bank and Commerzbank,” he added. In contrast, some French banks had been systematically undervalued. Despite political uncertainty, the French banking sector is showing solid results.

According to Hristov, European banks still have room for further growth. For instance, Santander shares are still trading at lower valuations compared to their American peers. The outlook for NatWest is also promising.

“The ECB’s expected rate cuts are more likely to benefit banks rather than hinder their growth,” Hristov explained. European banks are accustomed to operating in such environments and consistently perform well. We’re seeing excess liquidity that will be gradually withdrawn from the market.

“Despite the tariffs imposed by Trump, Europe could ultimately benefit from this process in the long term,” Hristov concluded.

This material is not an investment recommendation.
Watch the full interview in the video.