IBOS member bank Intesa Sanpaolo is named as the most prized bank in Europe according to share price to book value
In an article recently published by the FT, an analysis of relative valuations has revealed that the most prized bank in the EU, measured by share price to book value, is now IBOS member Intesa Sanpaolo.
This is all in despite of Italy being hit hard by the coronavirus and the economic forecast for nations is dim. However, despite overwhelming pressures, the ratio of Intesa’s share price to book value is still almost double the valuation attached to domestic rivals.
Supporters of the bank have cited Intesa’s strength of fee-earning businesses ,such as asset management and private banking, its insurance business, which has boomed, and the health insurance arm, which many believe may actually benefit from a post-coronavirus pick-up in business, as more people are expected to buy policies. Intesa also has stronger capital ratios than many rivals.
Carlo Messina, Intesa’s upbeat chief executive, highlighted the positive when he unveiled results for the first quarter a few weeks ago.
Read the full article via the FT here.