eurozone banks

ECB Tests Found That Eurozone Banks Are Able To Withstand The Stress Caused By The Pandemic

Santander Corporate & Investment | The ECB published on Tuesday the aggregate results of its vulnerability analysis of the 86 banks directly supervised under the Single Supervisory Mechanism. This shows that “the euro area banking sector can withstand the stress induced by the pandemic but, if the situation worsens, the decline in bank capital would be significant. Furthermore, the ECB has extended its recommendation that banks should not distribute dividends until 2021.


The Appeal Of Investing In Banks Is Very Strong: Expectations For Revaluation Are Close To 100% In A 1-2 Year Period

Ofelia Marín-Lozano (1962 Capital SICAV) | The starting point is much more solid than in 2008, when the banks emerged from many years of double-digit credit expansion and high rates. In addition, European banks have significantly improved their equity base, which is double, or even almost triple, the levels reached a decade ago in all their solvency ratios. The ratio of higher quality capital to risk-weighted assets, (CET1 or common equity tier 1) has risen from levels below 6% in 2011 to over 14% today. 


Banco Sabadell: from Over to Equal-Weight, and P. O. from 1.20 to 1.10 eur/share

Morgan Stanley | Bank analysts raised the sector to Attractive a few weeks ago because our macro no longer expects depo-type cuts and this increases confidence that profit estimates have hit a minimum in 2H19. We estimate a flat growth of the NII (+ 0.6%) in 2020 and 2021. There is optionality in the charge for deposits (could add 3% to the NII of the Eurozone banks).



Eurozone banks deposit facility rate.

Banking Union? Eurozone banks are hoarding nearly EUR700bn at the ECB

Eurozone banks are currently keeping 690 billion euros at their central bank, according to the ECB’s last figures. While the European Commission aims to achieve by end-2018 a completed banking union, this an evidence of a more fragmented market. Are lenders suspicious of their refinancing capability in order to honour their debts? And why is Ewald Nowotny asking to cut them some slack?


Brexit: the market impact is lessening

The impact of Brexit on the markets has gone through different stages. There was the initial upheaval in the wake of the referendum result, which had its maximum effect on June 24 when the Ibex recorded its biggest ever fall. And now the stock market and European public debt yields have recovered to pre-Brexit levels.


EPS estimates for global banks in 2015 cut by 3.4% over past year

Based on our latest in-house banking survey, sentiment towards the banking sector has deteriorated further over the past quarter. The decline in expectations on the banking outlook reflected rising global growth concerns, uncertainty over Fed funds rates, as well as volatility in commodity prices and currencies.


No Picture

Botín steers Santander ship into fresh water

MADRID | By Fernando G. Urbaneja | Spanish bank Santander is a powerful battleship, the euro zone´s largest by market cap, one of the world’s leaders, with an outstanding presence on both sides of the Atlantic. It is therefore a complicated engine to move, even slowly. The unexpected death of the company´s chairman, Emilio Botín, in September 2014, brought about the accession of his daughter Ana to the bank´s top post. The younger Botín possesses unquestionable professional credentials, but nonetheless has had to allay fears that any change in leadership can bring about.



Ana Botín replaces Santander’s CEO after only 2 years in the job

MADRID | The Corner | Banco Santander CEO Javier Marín will leave eurozone’s largest lender after only two years in the role. Ana Botín, in charge of the bank after her father Emilio Botín died in September, announced Marín’s replacement by  Jose Antonio Álvarez, who has spent the past decade as CFO. Ana Botín also made several changes to its board of directors. Shares in Santander rose 1.8% to 7.22 euros in Madrid following the announcement.