|Bid||11.63 x 0|
|Ask||11.64 x 0|
|Day's Range||11.63 - 11.74|
|52 Week Range||9.54 - 15.37|
|Beta (3Y Monthly)||1.88|
|PE Ratio (TTM)||6.83|
|Forward Dividend & Yield||0.27 (2.33%)|
|1y Target Est||N/A|
Moody's Investors Service ("Moody's") today took the following actions on the ratings and assessments of UniCredit S.p.A. (UniCredit). Today's rating action reflects the continued de-risking and strengthening of UniCredit's credit profile underpinned by a sharp reduction in the stock of problem loans in recent years together with improved and more stable profitability.
Slovenian banks had a joint net profit of 268.3 million euros ($301.46 million)in the first five months of 2019 versus 230.5 million in the same period of last year, the Bank of Slovenia said in its monthly report on banks on Thursday. "The banking system is operating in favourable economic conditions but Slovenia's economic growth can slow down in the future due to increasing risks in international environment," the central bank said, referring mainly to global trade conflicts. Slovenia only narrowly avoided an international bailout for its banks in 2013.
(Bloomberg) -- Italy is locking in lower borrowing costs, the latest European country to take advantage of plunging bond yields.The nation received nearly 17 billion euros ($19.1 billion) in orders at an offering of 3 billion euros of an existing 50-year security. It also plans to issue three- and seven-year notes this week, after yields fell to the lowest since before the populist coalition came to power in June 2018.Bond yields have dropped to record lows across Europe on expectations of further stimulus from the European Central Bank. While Italian bonds lagged behind the rally in the first half of the year, they have been the best performers this month after Rome avoided punishment from the European Commission over its budget deficit and as investors sought exposure to some of the highest yields still on offer in Europe.“The announcement perfectly encapsulates the yield grab that has been galvanized by the recent dovish shift on the part of the Fed and the ECB,” Rabobank International strategists led by Richard McGuire wrote in a note to clients. “The decision to tap the 50-year is reflective of investor appetite for both risk and duration.”Italy has mandated banks including Citigroup Inc., Goldman Sachs Group Inc. and UniCredit SpA for selling debt maturing in 2067 with a coupon of 2.80%, according to a statement. The initial price guidance was revised lower to 11 basis points over the 30-year yield, which is currently at 2.76%. The security was last tapped in January 2018 for 880 million euros.Benchmark Italian 10-year yields are at 1.73%, with the premium over German bunds, a key gauge of risk sentiment, at 209 basis points. The spread touched 194 basis points last week, the lowest level in over a year.Both Spain and France auctioned debt at record-low borrowing costs on Thursday. Investors are turning to peripheral euro-area bonds as the yields on German bunds are hovering around the European Central Bank’s -0.4% deposit rate.“In a world where the outstanding pool of positively-yielding European government debt for fund managers to invest in is shrinking all the time, this is where the price goes,” said Kit Juckes, a strategist at Societe Generale SA. “I think yields are more likely to fall further than rise from here.”(Adds orderbook size in second paragraph.)\--With assistance from Paul Cohen.To contact the reporters on this story: Anooja Debnath in London at firstname.lastname@example.org;John Ainger in London at email@example.comTo contact the editors responsible for this story: Ven Ram at firstname.lastname@example.org, Neil Chatterjee, Anil VarmaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- When Christine Lagarde takes over as the next head of the European Central Bank, one of the first people she’ll turn to is Philip Lane.The Harvard-educated former Irish central bank governor, who’s been a consultant for the World Bank and Federal Reserve, could be the ECB’s most influential chief economist since Germany’s Otmar Issing at the birth of the euro two decades ago.That’s because for all her leadership skills, Lagarde will be the first president without an economics qualification or a previous central bank career -- at a time when the euro zone’s need for stimulus will test the boundaries of policy innovation.“There will really only be one person -- education and experience -- in monetary policy, and that will be Philip Lane,” Erik Nielsen, chief economist at UniCredit, said in a Bloomberg Television interview. “You could very well come into a situation like when the ECB started, when Otmar Issing was immensely powerful.”Just one month into the role, Lane has already signaled he favors the aggressive approach to stimulus that marked the era of President Mario Draghi. In his first public speech as chief economist, he said this week that unconventional measures have worked and central banks must “proactively” respond to shocks.Lane’s job is to write and present monetary-policy proposals for the 25-member Governing Council. While that’s done after consultation on the six-person Executive Board that Lagarde will lead, it’s typically closely linked to the staff economic projections that he’s also responsible for, giving him considerable weight.His predecessor, Peter Praet, was seen as one of Draghi’s closest colleagues for the same reason. Yet Draghi was a former Bank of Italy governor and a highly regarded economist whose doctorate at the Massachusetts Institute of Technology was supervised by Nobel laureates.Lane, 49, was an economics professor at Dublin’s Trinity College and ran the Irish central bank from 2015 until this year.Lagarde, like Federal Reserve Chairman Jerome Powell, trained and worked as a lawyer. While her later roles as French finance minister from 2007-2011 and head of the International Monetary Fund since then have shown her to have a broad grasp of economics, the European Union leaders who nominated her this week mostly cited her leadership skills.French President Emmanuel Macron said she has “the qualities and competence for the ECB.” German Chancellor Angela Merkel said her leadership was “convincing” and Lagarde “knows what she doesn’t know and perhaps will have to ask somebody.”Leaders also suggested they voted for continuity by choosing someone who has previously endorsed the ECB’s unconventional stimulus. Lagarde was an early backer of ECB bond-buying.The challenge for the central bank now though is that monetary policy might be getting much harder. Interest rates are already at record lows and the deposit rate is at minus 0.4%. A 2.6 trillion-euro ($3 trillion) bond-buying program, only capped last year, is running close to self-imposed limits.Moreover, Lagarde’s Nov. 1 start date is also the day the U.K. is scheduled to begin life outside the EU -- possibly in a no-deal Brexit that shocks the continent’s economy.If the ECB is to find room for more stimulus to fight its slowdown -- as Draghi signaled it might need to do -- then it’ll have to be imaginative, and Lane will have to come up with solutions.There is an alternative route though, and one where Lagarde’s political skills may complement Lane’s technocratic ones. With central bank firepower depleted, pressure is rising on governments to play a stronger role with fiscal stimulus and structural reforms. The IMF repeatedly made that argument under Lagarde, who said just last month that policy makers will need to “maximize their combined effort” in the next slump.“We would expect to see fiscal policy being the new monetary policy going forward,” said Andrew Bosomworth, a portfolio manager at Pimco and former ECB economist. “The ECB will probably fit into that and support financing the governments through asset purchase programs.”Central banks are still forecast to add stimulus yet again, and investors are betting that Lagarde will endorse such an strategy. The euro and bond yields fell on the announcement of her nomination.Choosing Lagarde “virtually ensures that staff at the ECB will have an important role, and staff in key positions these days are probably more inclined to think like her than like more hawkish candidates,” said Roberto Perli, a partner at Cornerstone Macro LLC in Washington and a former Fed economist. “Her nomination increases the role of the staff and diminishes the importance of the hawks.”\--With assistance from Fergal O'Brien, Gregory Viscusi, Joao Lima, Patrick Donahue, Carolynn Look, Anna Edwards and Nejra Cehic.To contact the reporter on this story: Paul Gordon in Frankfurt at email@example.comTo contact the editors responsible for this story: Paul Gordon at firstname.lastname@example.org, Fergal O'Brien, Craig StirlingFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Moody's Investors Service has today affirmed the Baa3 rating of a junior senior unsecured bond instrument (ISIN:DE000HV5L1V1) issued by UniCredit Bank AG (UCB, deposits A2 stable/senior unsecured A2 stable, Baseline Credit Assessment (BCA) baa2). The affirmation of UCB's Turkish lira-denominated junior senior unsecured bond reflects Moody's view that the risks to a timely settlement of the principal payment obligation under this zero-coupon bond have not significantly increased, despite an increasing probability of policy measures that could constrain the ability of the issuer to access Turkish lira.
(Bloomberg Opinion) -- Earlier this month, my colleague Elisa Martinuzzi suggested that merging Deutsche Bank AG and UBS Group AG would, on paper at least, create a European banking champion. She concluded, though, that the regulatory obstacles to such a deal would probably be insurmountable. But there is a three-way combination that could create a regional lender with the heft to take on the U.S. banks without falling foul of national regulators.Jean Pierre Mustier has done much house-cleaning in his two years as chief executive officer of Italy's UniCredit SpA. So it’s not much of a stretch to posit that he might regard himself as the right leader to forge a European powerhouse. And while his current institution owns HypoVereinsbank in Germany, it still depends on Italy for almost half of its revenue.Mustier has already dallied with the idea of buying Commerzbank AG after talks between the German lender and Deutsche Bank broke down in April. Adding Commerzbank would increase his access to the small- and medium-sized German clients known as Mittelstand companies.With Deutsche Bank still in intensive care, the German authorities should welcome the opportunity to see its other problem child adopted by UniCredit for many of the same reasons as they championed the mooted domestic tie-up. But to build a true challenger to the growing U.S. dominance of European lending, Mustier would need to add a third geographic region to his stable – and here his nationality might be key to overcoming tribal objections.As a Frenchman running an Italian-German institution, Mustier would be well-placed to convince the authorities in Paris that Societe Generale SA would thrive under his stewardship.Adding SocGen’s expertise in derivatives would expand the range of balance-sheet tools that Mustier can offer to those Mittelstand companies and other customers in Europe. And the newly merged triumvirate – let’s call it UniComSoc, ignoring the Orwellian overtones – would be a true regional champion. In international bond underwriting, the trio would command a 6.3% market share based on the individual performance of the three banks in the first five months of this year. None of the trio is currently a top ten player; the merged group would rank behind only JPMorgan Chase & Co. with 7.2% of the market, and Citigroup Inc. with 6.9%.In European equity offerings, the merged firm would sneak into a top 10 dominated by U.S. and Swiss firms, again based on market share through May:But in European loans, a market worth almost 300 billion euros ($336 billion) so far this year, the combination would be a market-beating powerhouse with a share of almost 13 percent. Given European companies remain reliant on bank loans rather than the capital markets to satisfy the bulk of their funding needs, that’s the most important reservoir of capital and the one that European regulators would be keenest to see being provided by a leading domestic source.The futures market is now starting to anticipate a cut in borrowing costs from a European Central Bank whose ultra-low interest rates have already weighed heavily on bank profitability. The worsening economic outlook that’s seen European government bond yields drop to record lows this week should add a sense of urgency to the acknowledged need for cross-border banking mergers.If the combination of Deutsche Bank and Commerzbank turned out to be shooting for the moon, maybe Mustier should aim even higher to land among the stars.To contact the author of this story: Mark Gilbert at email@example.comTo contact the editor responsible for this story: Edward Evans at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Rating Action: Moody's downgrades 18 Turkish banks; outlooks remain negative. Global Credit Research- 18 Jun 2019. London, 18 June 2019-- Moody's Investors Service has today downgraded 18 banks in Turkey....
Slovenian banks made a combined net profit of 130.2 million euros ($145.63 million) in the first quarter of 2019, up from 128.8 million a year ago, the Bank of Slovenia said in a monthly report on Tuesday. Slovenia narrowly avoided an international bailout of its banks in 2013. The government fully or partially owns some of the biggest banks and controls about 30 percent of the banking sector.
Funds that built big short positions in Italy's leading banks from early 2018 have lowered the size of their bets in the last few months as political worries eased, regulatory data shows. Despite a looming budget showdown between Rome and Brussels, a Reuters analysis of data from Italian market regulator Consob shows that as of May 21 there were no net short positions above 0.5% in shares of Italy's two largest banks. Consob discloses changes in short positions above 0.5% and in 2018 funds had short positions in Intesa Sanpaolo and UniCredit which were above this level.
Commerzbank, in particular, might be a tempting target for rivals across the continent who want to build their presence in Germany. If there were a suitable offer, the German government – which owns 15.5 percent of Commerzbank – should be prepared to let the lender go. Berlin has been a strong proponent of the “banking union,” which is aimed at creating a unified credit market across the euro zone.