European Banks Slide on Renewed Credit Woes in US Regional Peers

European bank stocks retreated on Friday after loan issues at a couple of US regional banks hit sentiment and raised concerns about the credit market, weighing on Europe’s top-performing sector this year.

The Stoxx 600 Banks Index was 2.7% lower by 8:45 a.m. in London, the steepest decline since August 1. Heavyweights including Deutsche Bank AG, Barclays Plc and Societe Generale SA were more than 4% lower. The pullback pares some of the year’s rally, but the group still remains up more than 40% in 2025.