ECONOMY

Bank P/Es among lowest in Europe

Greek and Cypriot bank stocks are the third cheapest in Europe, based on a ratio using estimated 2009 earnings, according to Bank of Cyprus’s Kyprou Research. A collection of price-to-earnings ratios (P/E ratio), a valuation indicator that compares expected earnings with current share prices, shows that Greek and Cypriot lenders have a ratio of 9.1 versus 8.9 in Finland and 3.1 in Belgium. In Portugal, the P/E ratio stands at 13.3, while in Spain and Italy it had reached 9.6 and 18.6, respectively, the brokerage said, citing figures from Bloomberg published yesterday. Greek bank shares have plummeted 35 percent in the last three months as the country’s fiscal woes have spilled over into the equity market.