Shareholder Remuneration Supports Euro Area Banks Equity Valuations

Euro area banks show resilience and improved equity valuations supported by strong fundamentals and significant shareholder remuneration expected to reach EUR 289bn over 2026-28. Despite macro risks, the sector remains attractively valued with a positive outlook for net interest income.

Key Takeaways

• 1.Euro area bank equity valuations are being significantly driven by high shareholder remuneration through dividends and buybacks, catching up with US peers.
• 2.Shareholder remuneration for euro area banks is expected to reach nearly EUR 100bn annually between 2026-28.
• 3.Despite rising risks from geoeconomic shocks, euro area banks maintain resilient asset quality with low exposure to private credit stress (EUR 62bn).

Table of Contents

• THE CONTEXT
• THE DATA
• OUR VIEW
• TODAY'S DATA RELEASES
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