|Bid||1.5220 x 0|
|Ask||1.5480 x 0|
|Day's Range||1.5040 - 1.5800|
|52 Week Range||1.3062 - 2.6325|
|Beta (5Y Monthly)||1.45|
|PE Ratio (TTM)||6.28|
|Earnings Date||Aug 04, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||May 18, 2020|
|1y Target Est||2.58|
Italy's biggest retail bank Intesa Sanpaolo is expected to give conditional approval at a board meeting on Tuesday to a state-guaranteed $6.3 billion euro three-year loan for Fiat Chrysler (FCA), a source close to the matter said. Before the loan is granted, FCA's Italian unit will need to complete the approval process for the state guarantee it is seeking under a set of emergency liquidity measures the Rome government has put in place to support the economy in the face of the coronavirus emergency. FCA declined to comment.
Italian insurer Cattolica Assicurazioni could expand an insurance partnership with bank Banco BPM, while the fate of a similar joint venture with rival UBI is still unclear, the company's CFO said on Monday. The Verona-based insurer, in which the top investor is Warren Buffett's Berkshire Hathaway, has had an 850 million euro "bancassurance" agreement with Italy's third largest lender Banco BPM since 2018, which is limited to only part of the bank's branch network. Cattolica's newly appointed CFO Atanasio Pantarrotas, when answering a question on possible M&A deals in the next 12-18 months on a first-quarter conference call with analysts, said expanding the scope of the partnership to cover Banco BPM's entire network could be a "fairly likely option".
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Five-year South Africa credit default swaps rose to a fresh 11-year high of 506 basis points, up from 486 basis points at Thursday's close, according to IHS Markit data. Turkey CDS reached 631 bps, a rise of 15 bps, to the highest point since October 2008, the data showed.
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.
The cost of insuring debt issued by China and Italy, two of the countries worst hit by the coronavirus outbreak, against default fell on Tuesday. Five-year credit default swaps for China reached 66 basis points, down 7 bps from Monday's close, while Italy's edged down 9 bps to 183 bps, data from IHS Markit showed. The death toll in Italy rose by 602 on Monday, the smallest increase for four days, and the number of new cases also slowed.
The cost of insuring exposure to debt issued by major oil exporters Saudi Arabia and Russia surged on Monday, with China, Turkey, South Africa and Italy also seeing significant climbs as fears persisted over the impact of the coronavirus outbreak. Saudi Arabia, which started an oil price war over a failure to agree a production cut with Russia, saw its five-year CDS soar to a record high of 233 basis points, up from 198 bps at Friday's close, IHS Markit data showed. Russia's CDS added 35 bps to 301 bps, the highest in four years.
Italian banks are in much better shape at present than at the onset of the global financial crisis in 2008, after boosting their capital buffers and shedding problem loans as well as domestic government bonds, the central bank said on Wednesday. In a letter to the New York Times written in answer to an article on the dangers facing the country's banking system, the Bank of Italy pointed out that Italian banks' core capital stood on average at 14% of total assets at the end of last year, double the level of end-2007. Higher capital reserves allow the industry to better weather losses as a coronavirus outbreak is seen plunging the Italian economy into a deep recession, bankrupting companies and hurting banks' balance sheets.
European banks took heart from the Bank of England's plan to defend Britain's economy from the effects of the coronavirus outbreak, pushing stock prices up and the cost of insuring against default down. The move raised expectations for a similar response from the European Central Bank on Thursday, driving the euro zone banks index 1.5% higher and putting them on track for their first gain in two weeks. Britain's finance minister, Rishi Sunak, said he would do whatever it took to protect the UK economy from the global epidemic, shortly after the BoE slashed interest rates and gave banks permission to tap capital reserves in a stimulus package aimed at thwarting recession.
The cost of insuring exposure to debt issued by Italy's government and some of its lenders rose on Wednesday on fears over the economic toll the coronavirus spread could take on the country's economy. Five-year credit default swaps (CDS) on Italy's sovereign debt added 2 basis points (bps) from Tuesday's close to 116 bps, the highest level in four weeks, according to data from IHS Markit. Two of the country's banks, UniCredit and Intesa Sanpaolo , both saw their CDS rise by 4 bps to 78 bps, trading at their highest since mid-January and late January respectively.
(Bloomberg Opinion) -- The rise of social media has turned the fear of missing out — or FOMO — into a widespread anxiety. Those jitters may now strike parts of Europe’s banking sector with renewed anticipation for a wave of much-needed consolidation.An unsolicited bid by Intesa Sanpaolo SpA for Unione di Banche Italiane SpA on Monday night has triggered hopes of a process that would help Europe’s financial system reduce its excess capacity. It is not yet clear whether the combination will actually go ahead. But the offer raises two important questions. The first is whether any future mergers and acquisitions would proceed purely along national lines, contributing to the balkanization of the euro-area financial industry. The second is whether they would leave out weaker lenders, testing the appetite of increasingly powerless politicians for outright liquidations.The surprise 4.9 billion-euro ($5.3 billion) all-share approach appears to have received an approving nod from the European Central Bank. Roberto Gualtieri, Italy’s finance minister, said he is in principle in favor of deals aimed at consolidating the market. It’s not hard to see why: Changes in consumers’ behavior, competition from nimbler fintech companies and the prolonged era of low-interest rates have put Europe’s banking sector under immense pressure. And while lenders have made enormous progress in dealing with a gigantic mountain of non-performing loans, too few of them have exited the markets, unlike what’s happened in the U.S. What’s more, M&A deals have been far too rare: The Intesa-Ubi deal would be the largest acquisition in Europe in over a decade.Policy makers should hold back on the prosecco, however. For a start, the quest for a significant cross-border merger remains elusive in spite of efforts to create the conditions for that to happen. In the aftermath of the euro zone crisis, member states created a “banking union” to sever the link between a national government and its domestic financial system. The European Central Bank has since taken over as the main banking supervisor in the currency area, and large failing banks are in principle dealt with using a single rule book. However, banks continue to look domestically when they seek to expand, shunning the potential benefit of geographic diversification.It would be easy to blame executives for their lack of vision as they choose to stick to their own backyard. Intesa, with its 11.8 million Italian customers, is doing just that. In 2017, it took over the assets of Veneto Banca SpA and Banca Popolare di Vicenza SpA, two mid-sized Italian lenders, as they entered liquidation. The bank will now further increase its exposure to Italy — a country with an enormous public debt and a near-stagnating economy.However, bankers continue to pursue domestic mergers because they are more likely to produce the kind of cost synergies needed to justify a combination. Add to that the lack of a euro-region-wide joint deposit guarantee scheme, and regulatory uncertainty for deals across national borders, and you can see why the euro zone policy makers also have some soul-searching to do.While they’re searching, they would do well to consider the other unresolved issue in all of this: the future of the region’s weaker banks. Ubi is a comparatively healthy lender, which explains its appeal to Intesa. That should give pause to politicians and regulators, who may be expecting “white knights” to take over the more problematic banks. In the case of Italy, the list includes Monte dei Paschi di Siena SpA, which is currently under state control but should in principle be privatized next year; and Banca Carige SpA and Banca Popolare di Bari SCpa, where successive governments have arranged stopgap solutions involving a mixture of private and public money.The mooted merger between Intesa and Ubi shows that even if a wave of consolidation were to come to Europe, it could simply pass by those in the worst shape. The current EU framework makes it very hard for a government to prop up an ailing lender indefinitely. At some point politicians may have to consider whether some banks may simply have to fail — even if this carries a cost for shareholders and bondholders.Consolidation will not solve all of Europe’s banking problems. Whether they care about the creation of a true “banking union” or simply about the future of troubled lenders, policy makers should worry about those that are likely to miss out — and do something about it.To contact the author of this story: Ferdinando Giugliano at email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Ferdinando Giugliano writes columns on European economics for Bloomberg Opinion. He is also an economics columnist for La Repubblica and was a member of the editorial board of the Financial Times.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.
(Bloomberg Opinion) -- Italian banks embarking on a round of consolidation was always a matter of when, not if. Meager profitability, a fragmented industry and a desperate need for investment are obvious ingredients for M&A. Lenders have rid themselves of most of the bad loans that crippled Italy’s banks after the financial crisis, so dealmaking should be unhindered.Intesa Sanpaolo SpA’s surprise $5.3 billion offer for a smaller Italian rival in a four-way carve-up may not have been what investors had in mind. Intesa is already Italy’s biggest bank and its target, Unione di Banche Italiane SpA — the country’s fourth-largest — was seen as more of an acquirer of weaker rivals than a target.But the deal may provide the jolt the European industry needs. Almost a year has passed since the failed effort to combine Germany’s Deutsche Bank AG and Commerzbank AG through a more complex, risky deal. The completion of a simpler union could embolden chief executives elsewhere in the continent too.Intesa’s unsolicited all-stock bid, at a 25% premium to the closing price, would make it one of the biggest European banking mergers since the Lehman crisis. UBI, which hasn’t commented on the approach, was caught off guard. Just hours earlier in London, it presented its strategy as a standalone company.A deal would move Intesa into the group of top 10 European lenders, measured by operating income. Though UBI investors could argue for juicier terms, the strategic and financial rationale for a deal is compelling. The European Central Bank’s initial positive feedback on the merger should improve Intesa CEO Carlo Messina’s chances of persuading his UBI counterpart.A takeover would create a joint business with a market share of about 21% in loans and deposits, 23% in asset management and 19% in life insurance. To avert antitrust concerns, Intesa has agreed to sell as many as 500 branches to a regional lender and to dispose of insurance activities too. The banks have similar business models and the 5,000 anticipated job cuts are expected to be voluntary (3,400 job losses have already been announced by the banks). The deal would bring 510 million euros of cost savings and 220 million euros of revenue synergies, according to Intesa. The buyer is promising to pay a cash dividend of 0.2 euros per share for 2020, and higher from 2021, above current consensus estimates. To cover the deal’s cost, Intesa expects to benefit from about 2 billion euros of negative goodwill to help pay for integration expenses and a deeper clean-up of bad loans.Investors like what they’re hearing. A bond UBI sold five weeks ago has delivered an impressive 12% return, making it the best-performing bond in Europe this year. UBI shares rose as much as 29% on Tuesday, above the offer price; Intesa shares rose as much as 3.6%.Some investors had hoped that Intesa would make a bolder move to diversify its business away from Italy and to reduce its reliance on lending income. But support from the ECB for the UBI approach would at least show the regulator is willing to countenance much-needed M&A in Italy, and Europe.Messina’s unexpected move might inspire a broader consolidation. As sub-zero interest rates persist and economies sputter, European banks’ low profitability is unlikely to improve. Cross-border deals are still complicated by different national insolvency laws and the absence of a common European deposit-insurance scheme. At least Messina is doing something.To contact the author of this story: Elisa Martinuzzi at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of 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.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Intesa Sanpaolo S.p.A. Madrid, February 17, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Intesa Sanpaolo 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.
Italy's UBI is set to extend an insurance partnership with Cattolica for a limited time, sources familiar with the matter said, delaying longer-term decisions while it waits to see how consolidation among mid-sized banks plays out. Italy's fifth-largest bank is seen playing a leading role in a new round of M&A between second-tier lenders as they grapple with negative rates, a stagnating economy and a digital revolution in the industry. UBI had been planning to reorganise its insurance operations, valued at 1 billion euros, under a new three-year plan it will unveil next month and had been looking for a new partner.
Moody's Investors Service, ("Moody's") has today affirmed Nexi S.p.A.'s ("Nexi" or "the company") corporate family rating (CFR) at Ba3 and probability of default rating (PDR) at Ba3-PD. Concurrently, Moody's has also affirmed the Ba3 instrument rating on the E825 million senior unsecured notes due 2024 issued by Nexi S.p.A. The outlook has been changed to stable from positive. On 19 December 2019, Nexi announced the acquisition of Intesa Sanpaolo's ("ISP") merchant acquiring business , which covers approximately 180,000 merchants and E66 billion worth of annual transactions in Italy.
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Moody's Investors Service (Moody's) has today assigned a B2 corporate family rating (CFR) and B2-PD probability of default rating (PDR) to Sisal Pay S.p.A. (Sisal Pay or the company), a company, which will be formed through the combination of the payments business of Sisal Group S.p.A. (Sisal Group, B1 stable) and the payments business of Banca 5 S.p.A., a subsidiary of Intesa Sanpaolo S.p.A. (Baa1 stable). Concurrently, Moody's has also assigned a B2 rating to the new E530 million senior secured floating rate notes due 2026 and to be issued by Sisal Pay S.p.A.
Moody's has not assigned a rating to the EUR 859,500,000 Class B Residential Mortgage Backed Fixed Rate and Additional Return Notes due December 2072. The Notes are backed by a pool of Italian prime residential mortgage loans originated by Intesa Sanpaolo S.p.A. ("ISP", Baa1/P-2) and a number of banks which are currently merged with ISP, including Banca Cassa di Risparmio di Firenze S.p.A. (not rated), Banco di Napoli S.p.A. (not rated), Cassa di Risparmio in Bologna S.p.A. (not rated), Cassa dei Risparmi di Forlì e della Romagna S.p.A. (not rated), Cassa di Risparmio del Friuli Venezia Giulia S.p.A. (not rated), Cassa di Risparmio del Veneto S.p.A. (not rated) and Cassa di Risparmio di Pistoia e della Lucchesia S.p.A. (not rated). The amortising Reserve Fund will be funded to 2% of the Senior Notes balance at closing (around 1.77% in terms of the initial pool balance) and the total credit enhancement for the Class A Notes will be 13.22% The cash reserve is replenished in the waterfall immediately after payment of interest on the Class A Notes, therefore mainly acting as a source of liquidity for the Class A Notes.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Vseobecna uverova banka, a.s. Madrid, November 21, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Vseobecna uverova banka, a.s. 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.