FIG

“[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

“What is not clear is who will be doing the buying. By snapping up the healthiest second-tier lender, Intesa has removed the candidate slated to lead long-awaited deals between the handful of mid-market players which are most at risk from the threats facing the sector.” – by Valentina Za

“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