By Rochelle Toplensky Even as optimism about a vaccine-led recovery rips through global markets, European banks remain valued for a deeply uncertain future. There are no easy answers, but going private could be a solution for smaller ones. Shares in the region s lenders have risen 20% this year, but still trade at less than two-thirds of forward book values, on average, with some as low as a quarter of book. Such stubbornly low valuations might be expected to attract cash-rich private-equity investors looking to cut costs, consolidate companies or even liquidate assets. So far, buyout firms have snapped up nonperforming loans but mostly shied away from entire banks, largely due to regulatory concerns. Yet officials may be warming to the idea that private equity has a part to play in the sector s next consolidation wave.
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