Banking shares at huge discount

British banking shares have plunged from trading at a premium of 150 per cent above their book value before the financial crisis to a 40 per cent discount now, according to accountancy firm PwC.

Its latest valuation index focuses on the banking sector and highlights the extent to which bank valuations have declined. The report says UK banks are still attracting a higher valuation than their continental rivals and predicts a slow return to “normal” levels.