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Weekly news through July 15

Banking Essentials Newsletter December Edition Part 2

Banking Essentials Newsletter - November Edition

University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts

Estimating Credit Losses Under COVID-19 and the Post-Crisis Recovery


Weekly news through July 15

SNL Financial offers ourtop picks of banking news stories and more published throughout the week.

Buyers and sellers

* UniCredit SpAsold a stake in for about €328 million,and a stake in Polishunit Bank Pekao SA forabout 3.3 billion Polish zlotys. New CEO Jean-Pierre Mustier is swiftly to beef up the bank's capitaland strategy. Chairman Giuseppe Vita saidthe bank may still need more capital.

* Piraeus BankSA agreed to sella majority stake in its Cypriot unit to a company fronted by a longtime Lebanesebanker. Holding M. Sehnaoui SAL will acquire shares in Piraeus Bank Cyprus Ltd.from Piraeus Bank and alongside other investors will subscribe to a €40 millioncapital increase by the Cypriot unit. The transactions will reduce Piraeus Bank'sstake in the formerly wholly owned unit to 17.6%.

* Banca Popolaredell'Emilia Romagna SC completed the sale of bad loans with a total gross book value of approximately€450 million to Algebris NPL Fund and CerberusCapital Management LP's Cerberus European Investments. BPER said thetransactions, which are part of its bad loan management strategy, will not havea significant effect on the bank's consolidated income statement.

* Alior Bank SAlaunched a tender offer for the saleof 50,600,821 shares in Bank BPH SA,representing a 66% stake, for 31.18 Polish zlotys per share. The offer is in accordancewith the share purchase and demerger agreement that is part of Alior's acquisitionof Bank BPH's core business from GeneralElectric Co.'s GE Capital.

M&A rumors

* Banco SantanderSA is said to be interested in becoming the fifth potential for Raiffeisen Bank Polska SA.

* Italian bank rescue fund Atlante reportedly received tentative offers from several biddersfor Banca Popolare di Vicenza SpAand Veneto Banca SpA.

* Deutsche BankAG is interested in acquiringpart or all of Royal Bank of ScotlandGroup Plc's $3 billion Greek shipping portfolio. Buyer interest in RBS'Greek ship finance business reportedly cooledfollowing the Brexit decision.

Brexit aftermath

* An attempt to combine UniCredit's Pioneer Global Asset Management S.p.A. and 's Santander Asset Managementto create a €353 billion business may be on the verge of collapse as a result of the Brexit vote, according to theFinancial Times, although Reuters reported that both sides were looking fora way to salvage it.

* The latest review of credit conditions from the Bank of Englandfound that major Britishlenders expect the availability of credit to the corporate sector to remain steadyafter the U.K. voted for Brexit.

* SkandinaviskaEnskilda Banken AB CEO Annika Falkengren said the Brexit vote contributed to a "challenging"business environment for the bank and has made clients more cautious. Falkengrenadded that cautious business sentiment and the continued low-interest rate environmentcaused the drop in the bank's first-half group net profit to 2.23 billion kronor from 8.58 billion kronor ayear earlier.

Earnings season unfolds

* DNB ASAreported second-quarter group profitattributable to shareholders of DNBBank ASA of 4.11 billion Norwegian kroner, down from 4.55 billion kronera year ago. Second-quarter impairment of loans and guarantees totaled 2.32 billionkroner, up from 667 million kroner a year ago, mainly due to the to oil-related industries and shippingmarkets.

* Svenska HandelsbankenAB (publ) reported second-quarter group profit attributable to shareholders of 4.19 billion Swedishkronor, or 2.15 kronor per share, compared to 4.17 billion kronor, or 2.14 kronorper share, in the year-ago period. Net gains on financial transactions rose to 523million kronor from 451 million kronor a year ago. The result included capital gainsof 81 million kronor relating to the sale of the lender's shares in Visa Europe.

* Meanwhile, ErsteGroup Bank AG expects to reporta second-quarter net profit of approximately €560 million, resulting in total netprofit of about €830 million for the first half. The expected second-quarter profitis attributable to the release of about €30 million in risk provisions in Hungaryand Romania, as well as declining risk costs in other geographies. Erste bookeda one-off gain of €139 million from Visa Europe's sale.

In other news

* Shares in certain U.K. banks, including Lloyds Banking Group Plc and RBS, increased after the BoE's Monetary Policy Committee to keep the bank's key interestrate unchanged at 0.5%. Most of the committee's members expect monetary policy tobe loosened in August.

* The Basel Committee on Banking Supervision planned capital standards for higher-qualitydebt under its incoming framework on securitizations. The final standards, whichwill take effect in January 2018, include a risk weight floor for senior exposuresof 10%, down from the previously proposed 15%.

* UBS Group AGCEO Sergio Ermotti has strongly criticizedefforts to force the Swiss bank to disclose tax-related information from the pastand also said any costs arising from negative interest rates may be passed on toprivate wealth clients and institutional investors.

Featured during the weekon S&P Global Market Intelligence

Brexit doubts asUK banks face higher costs for hefty bond issuance: U.K. banks haveto sell billions of dollars worth of bonds to meet new too-big-to-fail rules. Brexitwill make that more expensive.

Liquidity-richDeutsche Bank may be stronger than CDS suggest: Credit default swapsare flashing red over Deutsche Bank again. But although investors caught with itsCoCos may be concerned, the bank has plenty of liquidity.

UBS CEO denouncestax information requests: Sergio Ermotti also told Switzerland's SonntagsZeitung that UBS Group's privatewealth clients and institutional investors may eventually have to bear the costof negative interest rates.

Italy bank bailoutmay strain Europe's bail-in rules in first big test: Italy wants tospend €40 billion bailing out its banks, without bailing in bondholders, raisingquestions about Europe's new bail-in law.