European Banks’ First-Half Stock Gains Are Biggest This Century

European bank stocks just completed their strongest first-half since 1997, and in doing so extended what has been a golden run for the sector.

The Stoxx 600 Banks Index rose 29% in the six months through June 30, the top-performing subgroup in Europe, as investors piled into lenders for their strong returns and resilient earnings. An increase in deal-making added more fuel to the fire, particularly in Italy.