Its hard to find an expensive European bank at the moment (except maybe some Scandis - and that is only relative). Market is assuming NIM will continue to get crushed, which is probably a fair assumption given where yields are, and NPLs will rise, again not an unfair argument either, with energy companies the new worry. But I think you need to extrapolate continued bad news out a few years to justify these valuations.
ECB meets on Thursday so if they don't cut rates I would expect some kind of bounce (subject to no virus news). I think a basket of euro banks at these prices may make sense, but I thought they were cheap last week too. There are a lot of investors with very polarised views on these, so I am sure someone will be happy to take the other side of the argument.
