S&W's Pignatelli: European banks will surge 70% in next two years

Mark Pignatelli, manager of the Smith & Williamson European Growth trust, has predicted European bank shares will rise 70% over the next two and a half years as the European economic cycle reaches its trough.

The former Schroders CIO said shares could re-rate as bank profits surge as the economy improves, despite many commentators' concerns the banks' woes are far from behind them. "I am satisfied that the business plans put to me by the CFOs I have met are credible and we are at point in the economic cycle where Europe is at its trough and things will improve from here. Any surprise will be on the upside." Pignatelli (pictured) has allocated his largest fund weighting to financials in the view the shares will re-rate in less than three years' time. "There are three dynamics that will d...