Bank valuations slip to 2008 levels

Bank valuations have been rocked by the sovereign debt crisis and investor equity risk concerns, according to the latest PwC Valuations Index. The rating slipped to just 60, hitting the lowest level since the financial crisis, with equity valuations indicating slower return to growth than forecast. Nick Rea, head of the financial services valuations team at PwC, said: “Regulatory reform will improve banks’ resilience but will also act to depress profitability across the sector over the medium term.”