The hardest hit sector due to Brexit is definately the European banks. Banks like Standard Chartered and Deutsche Bank have been making headlines long before Brexit with share prices plummeting. To me the share price weakness is starting to smell like a buying opportunity in selected European banks. On top of my list is Stan Chart, Credit Suisse and Deutsche Bank.
Lets put things in perspective by looking at Market Cap of the Swedish bank SEB (in red) which has performed reasonably well the last 5 years to the devastating performance of its much bigger competitors (i threw in Santander as well). Please observe the logarithmic scale.
As can be seen Stan Chart, Credit Suisse and Deutsche all have a total value in the same tange as tiny SEB. Top line revenue is a factor 5-7x larger for these companies compared to SEB. So is SEB expensive, the other three cheap, both, or the market is valuing these correctly?
My wager is on one or several of these giant banks being cheap at the moment, more study is needed before i take an investment decision.