Affairs of the heart may be consuming the French presidency and pessimism may surround the country's economic prospects. But at France's major banks, a mood of cautious optimism—tinged with pragmatism—that ought to reinforce investor confidence in the sector is taking hold.

French banks have been on a pretty good run; BNP Paribas, Societe Generale and Crédit Agricole have outperformed the European Stoxx 600 banking sector index over the last 12 months, their shares rising by 33% on average. Still, these banks trade at or just under their tangible book value, a sign that investors aren't relying on them to deliver a return on equity much ahead of their cost of equity this year.