European Banking Sector Under Pressure

Share prices of European banks and insurers have fallen this year, hurt by emerging market turmoil, trade war fears and money laundering scandals

Morningstar Analysts 16 October, 2018 | 7:01AM

Prudential Headquarters in London

European banks' share prices have declined by 11% over the past year and 5% over the past three months, reflecting concerns first around banks with emerging market exposure and the impact on global trade of the escalating tariff war.

Banks with a strong global and emerging market presence have been under the most pressure. Populist policies from the Italian coalition government could be a risk, not only to Italian banks but also the whole eurozone. Danske Bank (DANSKE) and ING (INGA) have been punished severely by the market as regulators dished out heavy fines for failure on their part to pick up on money laundering.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Danske Bank A/S83.30 DKK0.58
ING Groep NV5.87 EUR-1.19
Prudential PLC1,106.00 GBX2.98

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