What's behind the low valuation of European banks?

Great explanation by Johannes Borgen on Twitter:

For some strange reasons there seem to be a flurry of tweets and takes about the incoming crisis of Eurozone banks – probably partly triggered by Raoul’s tweets, partly by those chart below. So a quick thread on the situation of EZ banks today. https://t.co/yx3IFXTkT2 pic.twitter.com/8jLyUtOBns
— JohannesBorgen (@jeuasommenulle) August 13, 2019

In summary: banks are more robust than they used to be, but they have profitability issues.

To learn more about bank stocks, listen to the recent episode of Odd Lots with John Hempton.

See also this thread by Marc Rubinstein:

Some talk out there about "total collapse of the entire EU banking sector”. I don't buy it. Share prices follow, they don't lead. Few banks need to raise capital, and firewalls now in place to protect funding. Which is why there’s no panic in credit. /1https://t.co/80od6yvHfI
— Marc Rubinstein (@MarcRuby) August 11, 2019

I also blogged about bank stocks in my 2017 post A lost decade (for bank investors).

What’s behind the low valuation of European banks?

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