The Fusion and acquisitions (M&A) in the banking sector European are growing. The volatility of the market triggered by the US duties threatened the global recovery of the M&A, with various delayed or canceled operations, but it does not seem to have curbed the conclusion of agreements in the banking sector. Since the beginning of 2025 European banking operations have been announced for a total record of $ 27 billionalmost double compared to the same period of 2024. With the main European banks that generate a substantial excess of capital – over 300 billion returned to shareholders since 2022 – there is a renewed capacity and propensity for the activities of M&A. This is what emerges from an Oliver Wyman report.
The resumption of operations
The volumes of the operations were already clearly resumed by the historical minimums of the pandemicdoubled to 36 billion between 2020 and 2024, driven by Restored profitability of the sector, from the improvement of the patrimonial situation and from the strategic urgency of scalability and diversification. “Although it is still too early to predict the final scope and impact of the duties on the panorama of European bank agreements, the basic logic for consolidation in the European banking sector – notes Oliver Wyman – is more convincing than it has been in the last ten years. The resumption of the activity of M&A and its potential future reminds us that the best way for the management team to acquire value is a detailed set of Best Practice “.
The reasons behind the M&A trend in the banking sector
European banks management teams have the means to engage in Fusion and strategic acquisitions. The ability and propensity to engage in mergers and acquisitions by the main European banks are fueling the activity, After a decade of stagnation. In the next two years, – explains the report – it is expected that the European banks of the first quarter will generate Over 500 billion dollars of excess capital compared to the minimum regulations.
With the evaluations European banks close to the historic topsthe management teams have a growing range of options on where to use this excess capital. THE yields relative of the mergers and acquisitions always seem more interesting than the regaining of shares proper. In the meantime, also in Europe the regulatory authorities have started to support the mergers and acquisitions in the banking sector more.
The fragmentation of the European banking sector
To support the M&A trend is also the fragmentation of the European banking sector. The First five banks In Europe and the United Kingdom – underlines Oliver Wyman – they only hold 24% of the active ingredients banking compared to 57% of the United States. For this, explains the report, there is a large room for maneuver. Bank acquisitions and mergers also allow credit institutions of diversify or strengthen its presence in more profitable customer segments, such as asset management.
