Europe Set for Wave of Domestic Bank M&A This Year, ING CEO Says

Europe’s banks are set for a watershed year of domestic mergers, as high valuations encourage in-market deals even as regulatory hurdles continue to hinder cross-border transactions, according to the head of one of Europe’s top banks.

“Now banks are trading at around one-times book, or between one and two times book, we’re in the zone when things start to happen,” ING Groep NV Chief Executive Officer Steven van Rijswijk, whose bank is commonly seen as a potential acquirer, said in an interview. “You need to catch the wave, when you’re a buyer or a target.”

Van Rijswijk said M&A ...