Turkish President Erdogan has began to exercise his new “attributes”, recently provided by an ever more authoritarian political system, in relation to the monetary policy of the central bank by affirming informally that interest rates will be lowered. This weakened the Turkish Lira from 4.66/$ to 4.85/$ (although it layered recovered to 4.82/$). This had a negative impact on the share price of BBVA, which holds 49.85% in the Turkish bank Garantí.
Bankinter analysts believe the markets are undervaluing the European Financial Sector. Expect average BPA for the sector as a whole to exceed 10% in 2018.
Bankia Chairman, José Ignacio Goirigolzarri, has fuelled M&A rumours after saying in an interview with the FT that the bank “fits perfectly with other large Spanish banks, specially BBVA.”
Fernando Rodríguez | Analysts who study banking stocks every day do not seem to pay much attention to the factors which condition the systemic banks. In general, they feel that whether a bank is systemic or not should not influence its stock market performance or its dividend policy. It should not be the only criteria for investing in a bank.
Ofelia Marín-Lozano | All the banks have seen a sharp decline in their profitability compared with a decade ago. This is partly due to the heavy provisions made to offset the impact of the property crisis (over 300 billion euros in accumulated terms). But it is also the result of the decrease in pre-provisions operating profit and the requirement for the lenders to raise their capital in line with assets.
Fernando Rodríguez | Spain’s big banks BBVA, Santander and Banco Popular have recently announced they will gradually reduce their branch network. What is the significance of this move? Norbolsa analyst Nagore Diez Cerceda offers us some opinions.
Regardless of the disappointments, the one-off items, a few little surprises and all kinds of explanations regarding their earnings and provisions, the so-called big banks’ results are what they are. And none of them have anything to celebrate. They remain vulnerable and unable to reach cruising speed.
The European Banking Authority (EBA) rectified the solvency figures for the Spanish banking sector. The regulatory authority has raised the average “fully-loaded” capital ratio at end-June to 10% from a previous 9%. This compares with the European sector average of 11.8%
Renta 4 | Spain’s big banks H2 results expected to be weaker.
Spain’s top five banks posted a combined net profit of 7.989 billion euros in the first half of 2015, up 48 percent from a year earlier, thanks to the improving economic situation and a decline in bad loans provisions.