Why Are Bank P/Es So Low?
For banks and finance companies to make profits they have to get money (from the depositors, loans etc.) and lend them (as loans, leasing...) and make a profit from the difference. They're not like the companies in manufacturing or something. They can't just go on making more and more items. To make money they need to have more money so they can loan them out. So their growth is limited. One way to make more business is to take more money as loans, debentures, etc.
So they're banks with a PE ratio under 10 that's probably fairly valued, whether it's a emerging market, frontier market, or has any other flashy names if they want to make money they have to some how get more money from depositors, loans, more shares what ever, pay interest and lend that money making a small profit. Because interest rates are low, the difference is now thinning out. Banks can't grow like some businesses.
So don't expect rallies.