Lates News

The Ibex 35 index in Spain hit a record high in October for the first time since 2007, while Italy's FTSE MIB index reached its highest level since 2001 last month. The majority of these gains were driven by banks, with bank stocks contributing to nearly 70% of Spain's increase this year and nearly 80% in Italy, where banks make up close to 40% of the benchmark indices. Roberto, the strategy director at Singular Bank, stated, "Spanish and Italian banks are now much better than they were 20 years ago, and their business is more stable. Their balance sheet leverage is lower, with loan-to-deposit ratios below 100%, significantly reducing their reliance on interbank and capital markets financing, and their sources of income are more diversified." The best performing industry in Europe this year is the Stoxx 600 banking index, which has risen by 56%, compared to a 14% increase in the overall market index. Spanish banks have stood out, with four of the top ten stocks in the industry for 2025 contributing to this increase. Strong earnings, generous dividends for investors, improved economic prospects, and industry consolidation have supported the stock prices of banks in these two Southern European countries and other regions.