The ongoing malaise in the European financial-services sector is making it incumbent on banks to boost profitability if they are to regain the trust of the capital markets and present an attractive opportunity to investors.
Banking leaders are struggling to find sustainable solutions that would enable their institutions to produce returns close to or greater than their cost of equity.
European institutions looking to fix their income statements and balance sheets through M&A have a relatively brief window in which to act, as the number of attractive targets is limited.
So it is essential that they move fast, but do so wisely, paying careful attention to all the factors that ensure a deal’s success.
To put it bluntly, European banks aren’t doing very well these days.