Banks

“The European Central Bank has lifted its blanket recommendation against distributions, including dividends and share buybacks, but under strict conditions that will have the biggest impact on eurozone banks with high capital returns, analysts said.” – by Vanya Damyanova

“…the PRA judges that an extension of the exceptional and precautionary action taken in March is not necessary and that there is scope for banks to recommence some distributions should their boards choose to do so, within an appropriately prudent framework.” – Bank of England

“In spring, the pandemic interrupted plans among the country’s banks to shed loans still festering from the eurozone crisis a decade ago. But stimulus from central banks and governments globally has sent fresh cash into funds that buy non-performing loans, reinvigorating the efforts.” – by Margot Patrick

“[Banks] generated enough pre-provision operating profit in the first nine months of 2020 to absorb their dud-credit charges. They also reported higher common equity Tier 1 (CET1) capital ratios for the end of September than in March.” – by Liam Proud

“The chief executives of some of Europe’s biggest banks are hoping regulators will soon let them resume cash dividend payments, easing pressure on their flagging share prices.” – by Simon Clark

“Another round of widespread lockdowns, for instance, could add more than $1 trillion in non-performing loans to the pile, according to the European Central Bank, and put the explosive issue of bank bailouts back on the table.” – by Marion Halftermeyer, Alexander Weber and Antonio Vanuzzo

“All five UK banks have under-performed, falling by between 42% and 55% this year compared to a 36% fall in the European banking index .SX7P.” – by Iain Withers and  Lawrence White

“As many bankers fled Italy’s financial capital for second homes in the mountains or lakes at the start of a coronavirus lockdown in March, Victor Massiah rushed instead to rent a house within walking distance of UBI Banca’s Milan offices.” – by Andrea Mandala, Valentina Za and Pamela Barbaglia

“The European Central Bank (ECB) has redoubled its efforts to encourage mergers and acquisitions in the euro zone banking sector by seeking to tackle market myths and launching a public consultation on its approach to consolidation.” – by Joe Brennan ECB Public Consultation Announcement here.

“If we assume there will be no break-up of the euro, and that banks will not need significant capital hikes, the appetite for investment is very strong. Average revaluation expectations are close to 100% within a 1-2 year period.” – by Ofelia Marín-Lozano