SSSB favours European investment bank sector

Investment banks, which have struggled through almost three years of a bear market, are showing signs of recovery. Jeremy Sigee, an analyst at SchroderSalomonSmithBarney (SSSB), said European investment bank confidence indicators, equity market transaction volumes and revenues are all beginning to turn up. For this reason SSSB is recommending an overweight position in the European investment bank sector. Sigee said: 'However, they have also seen recovery in share prices and a re-rating to 13-22 times P/E multiples on our 2003 estimates. This gives investors a dilemma. 'These stock...