|Bid||1.2535 x 0|
|Ask||1.2555 x 0|
|Day's Range||1.2345 - 1.2780|
|52 Week Range||1.0115 - 2.5900|
|Beta (5Y Monthly)||1.88|
|PE Ratio (TTM)||18.46|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Apr 20, 2020|
|1y Target Est||N/A|
(Bloomberg Opinion) -- It took years for Italy’s banks to cleanse their books of the bad debt they built up after the financial and sovereign debt crises. After a few months of the coronavirus, they may be staring at another wall of soured loans.Among the countries worst hit by Covid-19, Italy’s strict lockdowns have crippled its economy and its small and medium-sized companies in particular. The nation’s banks are heavily exposed to the SME sector and government-backed loans and grants can only soften the probable blow from credit losses.While Italy’s biggest banks have capital cushions that should see them through the crisis without needing to tap investors, regulators say some smaller, less profitable lenders might not make it on their own. Under these market conditions, one would think that consolidation in the Italian banking sector makes perfect sense. But Unione di Banche Italiane SpA, a mid-sized commercial lender based in Bergamo — a hot spot of Italy’s virus outbreak — has ideas of its own. UBI, as the bank is known, is so keen to thwart an unsolicited takeover by its bigger rival Intesa Sanpaolo SpA that it’s making an unusual claim: The coronavirus is a material adverse change and should invalidate the bid. This attempted rejection of Intesa might make sense if UBI were trying to squeeze out a better price for its investors, but that doesn’t appear to be the case. It just seems to want to pursue its own plans, a strategy shareholders might end up regretting.Days before the stock markets peaked in February, Intesa made an all-stock offer for UBI that valued the country’s fifth-largest bank at about a 25% premium. Intesa Chief Executive Officer Carlo Messina didn’t endear himself to his UBI counterparts: His hostile bid, a big no-no in banking, came hours after UBI’s CEO Victor Massiah had presented a new strategic plan. Nonetheless, the rationale for a combination is as compelling now as it was before the coronavirus hit — if not more so.Under UBI’s pre-pandemic strategy, the lender was trying to repair its measly profitability by improving efficiency, focusing on higher-margin corporate investment banking and getting rid of more of its bad debt. Massiah also sees UBI as a potential aggregator of smaller Italian banks. An alternative deal with Banco BPM SpA has been mooted.It’s unclear why Massiah’s approach is more appealing than a takeover by Intesa. The suitor may have to dial back its lofty dividend expectations for the merged company as the pandemic wrecks the economy, but if it achieves two-thirds control of UBI, it should be able to deliver chunky cost cuts by combining the two businesses.A tie-up between UBI and Banco BPM, by contrast, would leave little room for maneuver should credit losses spiral and the revenue outlook weaken, as expected. Analysts at JPMorgan Chase & Co. predict that non-performing loans in Italy could surge by 162 billion euros ($178 billion), under its worst-case scenario. While UBI has slightly better credit quality than its peers, 23% of its loan book is to SMEs, compared to Intesa’s 20%. The figure stands at 34% at Banco BPM.There is an argument that Italy could do with a third strong lender to rival Intesa and UniCredit SpA, and that UBI could team up with somebody else to deliver that. Italy’s antitrust authority is reviewing the deal. But with the economic damage caused by Covid-19, the Intesa-UBI deal has become more attractive. UBI’s shareholders should at least have their say on whether they support the idea.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Banco BPM Società per Azioni (BIT:BAMI), operating in the financial services industry based in Italy, saw significant...
Moody's Investors Service (Moody's) has determined that the implementation of certain amendments to Banco BPM (BPM) S.p.A. - Mortgage Covered Bonds 2 will not, in and of itself and of this time, result in the downgrade or withdrawal of the ratings currently assigned to the covered bonds issued by Banco BPM S.p.A.. Mitigants to absorb a potential deterioration of the credit quality of the pool include the level of overcollateralization which is already in place in the programme.
Moody's Investors Service (Moody's) has determined that the implementation of certain amendments to Banco BPM (Banco Popolare) S.p.A. - Mortgage Covered Bonds 1 will not, in and of itself and of this time, result in the downgrade or withdrawal of the ratings currently assigned to the covered bonds issued by Banco BPM S.p.A.. Mitigants to absorb a potential deterioration of the credit quality of the pool include the level of overcollateralization which is already in place in the programme. Moody's opinion addresses only the credit impact associated with the amendments and Moody's is not expressing any opinion as to whether the amendments have, or could have, other non-credit related effects that may have a detrimental impact on the interests of bondholders and/or counterparties.
Rating Action: Moody's takes actions on 15 Italian banks. Global Credit Research- 26 Mar 2020. Virus-related shock drives negative outlooks and reviews for downgrade.
Moody's Investors Service ("Moody's") today assigned a (P)B1 rating to the senior non-preferred debt programme of Banco BPM S.p.A. (Banco BPM). Non-preferred senior notes, referred to as "junior senior" unsecured notes by Moody's, will rank junior to senior preferred notes and senior to dated subordinated notes. The (P)B1 rating assigned to Banco BPM's junior senior unsecured debt programme reflects (1) the bank's ba3 standalone Baseline Credit Assessment (BCA); (2) high loss-given-failure for junior senior unsecured instruments, which results in a one-notch downward adjustment from the BCA; and (3) a low probability of government support, which results in no further uplift.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Banco BPM S.p.A. Paris, February 17, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Banco BPM S.p.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Diversification is a key tool for dealing with stock price volatility. Of course, the aim of the game is to pick...
Moody's has not assigned any rating to EUR 16.9M Class J Asset Backed Fixed Rate and Variable Return Notes due October 2034. Additionally counterparty risk could cause a downgrade of the ratings due to a weakening of the credit profile of transaction counterparties.
Banco BPM Società per Azioni (BIT:BAMI), operating in the financial services industry based in Italy, received a lot...
Moody's Investors Service ("Moody's") has today upgraded the ratings of RMBS Notes issued by BPL Mortgages S.r.l. The Reserve Fund provides liquidity coverage over the life of the transaction as well as credit support at maturity.
Rating Action: Moody's upgrades the ratings of all rated notes in BPL Mortgages S.r.l. Madrid, June 10, 2019 -- Moody's Investors Service ("Moody's") has today upgraded the ratings on the following ABS SME notes issued by BPL Mortgages S.r.l.