BBVA - Tariff Turbulence Clouds Outlook For European Banks' M&A Moves

2025-04-17 04:45:00 ET

Summary

• The market and economic disruption triggered by the announcement of tariffs on all US imports will be a major distraction for the handful of European banks engaged in M&A and could complicate the execution of deals underway.
• The sharp sell-off in European bank stocks reflected investor concerns about the potentially negative impact tariffs could have on lenders' profitability and asset quality.
• The S&P Europe BMI Banks Index rose by more than a third at its peak in the first quarter as investors responded to positive forecasts for the eurozone economy amid a proposed loosening of German fiscal policy and improved returns for lenders.

The market and economic disruption triggered by the announcement of tariffs on all US imports will be a major distraction for the handful of European banks engaged in mergers and acquisitions and could complicate the execution of deals underway....

For further details see: