BANKS

BBVA y mas

Why Has Spain’s Banking Sector Rally Been Suddenly Cut Short?

The Spanish banking sector’s stock market rally has been suddenly cut short. The listed banks’ index  had risen over 45% since the minimum levels of June 2016 until the first week of January. But since then, it is seeing a correction. Two matters of concern for investors are the impact of the floor clauses ruling on the banks profit and loss account, as well as the problems of the Italian banks.


Greece debt

“What Is Clear Is That Greece Cannot Pay Its Debt And Will Never Pay It”

“What is clear is that Greece cannot pay its debt and will never pay it. There needs to be an acquittance. And European legislation does not allow for waivering of debt. What they are going to do now, and it should have been done seven years ago, is to modify the conditions in such a way that the debt will be practically waivered,” says Spanish economist Fernando Eguidazu, as he leaves his Foreign Office post of Secretary of State for the European Union.


Bonds and pricing

A Price Earnings-Ratio Of 15.5 For 2017 And Counting

CaraxAlphavalue | We held the view a year ago that 2016 would be difficult. It turned out to be wrong from summer 2016. Still, we repeatedly mentioned that the 2016 earnings delivery would not be as strong as anticipated from a recovery year after a disastrous 2015. Price earnings ratio ambitions started 2016 with a +12% hope. By early 2017, we are down to 7.5% on our coverage (469 stocks with a combined market cap of about €9tn).



bank spain

Should Spain’s Banks Worry About A Debt Bubble Burst?

The Bank of Spain’s (BoS) Financial Stability Report usually puts its finger on the problem when it highlights the main risks affecting the banking business. As well as low interest rates and the deterioriation in both Spanish and global economic prospects, the BoS’ latest report points to another factor which has not warranted so much attention: the decline in the prices of financial assets, both in fixed income securities and equities.


ibercaja

The Uncertain Future Of Spain’s Bailed Out Savings Banks

The savings banks which were bailed out by the FROB continue to present problems for that institution and the government. The idea was that after they were restructured and their value had increased, they would find a buyer or incorporate a partner with a controlling stake or seek a stock market listing. So then they would give back at least a good part of the state aid received from the FROB. But these plans are turning out to be difficult to implement.


bank of greece2

A Market For NPL Resolution

Jens Bastian via Macropolis |  When the largest Greek banks (in terms of assets) published their second quarter results a fortnight ago, much investor attention was focused on the formation and breakdown of non-performing exposure (NPE) on their respective balance sheets. This focus is the result of regulatory authorities and investors wanting to know if the four systemic banks have started to reverse the multi-year trend of continuously rising “red loans” in their portfolios.

 


cajerocm

The Future of Bank Branches in the US

BBVA Research | The demise of the branch has been prophesised for decades, yet it still remains a crucial access point for bank services, valued by most bank customers. However, the question about the future of retail branches looms large as mobile and online banking are becoming ubiquitous, most routine retail banking services that do not involve cash are becoming available remotely, and as customers are ever more comfortable with the new technologies for accessing them.


Italian banks results

Looming Banking Crisis in Italy Casts Another Shadow on Eurozone

Peter Lundgreen via Caixin| What should be deeply worrying about the growing banking crisis in Italy is the origin of the non-performing loans. One significant sector is retail and wholesale, meaning it’s a widespread problem. A severe banking crisis is a shock for any economy and will, in many cases, hamper economic growth. This is the risk that Italy and the Eurozone are facing.


property market

Spain’s banks no longer main players in property market

F.Barciela /F. G. Ljubetic | If the banks are still the protagonists in terms of granting mortgages to private individuals, another thing is new developments where their role is decreasing. Burned by what happened in the past, the banks are looking very closely, and selectively, at each new development proposal. This has meant that in the last few years alternative financing formulas have emerged which property developers are using to push ahead with their projects.