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BAMI - Banco BPM SpA News Story

€1.43 0.0  2.9%

Last Trade - 9:55am

Sector
Financials
Size
Mid Cap
Market Cap £1.89bn
Enterprise Value £5.07bn
Revenue £4.62bn
Position in Universe 97th / 719

BUZZ-Southern European Banks: HSBC cuts EPS estimates on higher provisions

Wed 13th May, 2020 7:36am
** HSBC cuts its earnings per share (EPS) estimates for
Southern European banks to factor in higher loan loss provisions
due to COVID-19 impact
    ** HSBC says credit quality is a big unknown -- it remains
conditional on the shape of the GDP recovery in H2 2020, as well
as the success of state liquidity measures
    ** The broker says, though, that it sees differences in
capital emerging among banks, despite regulatory forbearance and
cuts target prices for all but one of the 11 Italian and Spanish
banks in its coverage
    ** HSBC downgrades Spanish banks Santander  SAN.MC  and BBVA
 BBVA.MC  to "hold" from "buy" as it believes their more
stretched capital bases, FX headwinds and challenging trends in
emerging markets drive a cautious stance 
    ** HSBC also cuts Italian lenders BPM  BAMI.MI  and BPER
 EMII.MI  to "hold" from "buy" as the broker believes the
non-performing exposure de-risk for these two banks will be
challenged by the current economic conditions
    ** Among the bigger Italian banks HSBC says Intesa Sanpaolo
 ISP.MI  is its best idea given the banks' limited capital
concerns and superior business model
    ** The broker keeps its "buy" rating for Intesa Sanpaolo,
Mediobanca  MDBI.MI , Unicredt  CRDI.MI  and UBI Banca  UBI.MI 
    ** It maintains "hold" rating for Spanish banks Bankia
 BKIA.MC , Caixabank  CABK.MC  and Sabadell  SABE.MC 

 ((JoaoManuel.VicenteMauricio@thomsonreuters.com))
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