Five of the Best: Banks for a European turnaround

T Rowe Price European equity specialist Andrew Clifton reveals five of the best European banks to back against the backdrop of improving sentiment in the eurozone.

European financials remain out of favour with many investors and have been trading on their lowest multiples for many years in recent months, offering stock pickers good opportunities. But US money market funds have nearly doubled their allocation to European banks over the past 12 months, according to data from Fitch released at the end of July, showing a clear sign that investor sentiment towards the region is on the rise. For Andrew Clifton, portfolio specialist for European equity at T Rowe Price, consolidation in the sector, as well as provisions against loans, produce a strong o...