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☆ Italy's Intesa convinces investors on payouts
▼ + stars: | 2023-01-23 | by ( Valentina Za | ) www.reuters.com time to read: +3 min

Investors fretted about the impact on earnings and the bank's ability to stick to generous capital distribution plans, starting with a pending 1.7 billion euro share buyback. Intesa has put the buyback on hold, despite receiving European Central Bank clearance, until approval of 2022 results on Feb. 3. In the fourth quarter, Intesa shed risks on 10.3 billion euros in loans through two so-called synthetic securitisation deals, including a jumbo 8 billion euro transaction. Market calculations put the cost of similar transaction at around 25 million-30 million euros a year for 2 billion euros in assets. Intesa also sold 4 billion euros in leasing contracts.

☆ Intesa reassures on capital distribution after asset risk worries hit shares
▼ + stars: | 2023-01-20 | by ( Valentina Za | ) www.reuters.com time to read: +3 min

Shares in Intesa fell by 2% after Bloomberg reported Intesa was cutting as much as 20 billion euros ($22 billion) in risk-weighted assets to address supervisory remarks about its inadequate risk models. Intesa said the risk weighted asset (RWA) reduction it had carried out in the fourth quarter related to regulatory changes kicking in from Jan. 1, 2023 and its core capital would land at around 13% at the end of 2022. "We believe that the group is working on RWAs optimisation as well as rationalisation of capital usage in order to face regulatory headwinds (around 45 basis points already communicated) and continue the generous capital distribution that management had in the past." Il Sole said banks had taken action to avoid the capital hit by shifting to capital-light businesses, transferring risks to investors through so-called synthetic securitisation deals or shedding assets altogether. ($1 = 0.9232 euros)Reporting by Valentina Za, editing by Gianluca Semeraro and Keith WeirOur Standards: The Thomson Reuters Trust Principles.

☆ Italy's Intesa reassures investors over capital distribution
▼ + stars: | 2023-01-20 | by ( ) www.reuters.com time to read: +1 min

MILAN, Jan 20 (Reuters) - Intesa Sanpaolo (ISP.MI) on Friday sought to reassure investors that it had sufficient capital reserves to see through its shareholder distribution plans, after its shares fell on concerns about reported large asset disposals. Intesa said it expected its best quality capital to stand at around 13% at the end of the year and to remain well above the bank's minimum target of 12% over the course of its business plan "with significant value creation and distribution to shareholders." It added that the reduction in risk-weighted assets that took place in the fourth quarter was due to regulatory changes kicking in on Jan. 1, 2023, which meant the assets in question had a negative impact when comparing the operating income they produced with the cost of capital they required. Reporting by Valentina Za; Editing by Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.

By acquiring MPS, UniCredit could have bridged in part the gap with domestic champion Intesa Sanpaolo (ISP.MI), which overtook it as Italy's top lender in 2020 by buying smaller peer UBI. Such a deal would have further widened the distance between the top two banks and Banco BPM (BAMI.MI), which ranks third with roughly one-fifth of their assets. Sources with knowledge of the matter have told Reuters Banco BPM together with UniCredit remain potential buyers for MPS. On Thursday, Banco BPM CEO Giuseppe Castagna was quoted as saying MPS was "too big a mouthful" for his bank to swallow. Bankers say an MPS deal could help Banco BPM loosen the grip of Credit Agricole (CAGR.PA), the French bank which this year became the single biggest investor in Banco BPM.

☆ Italy's goal is several big banking groups as it works to exit MPS - PM
▼ + stars: | 2022-12-29 | by ( ) www.reuters.com time to read: +2 min

MILAN, Dec 29 (Reuters) - Italy will work to exit the capital of bailed-out lender Monte dei Paschi di Siena (BMPS.MI) with a view to creating a banking landscape with several large groups, Prime Minister Giorgia Meloni said on Thursday. Meloni said Monte dei Paschi had been "very badly handled" by previous governments leading to taxpayers spending billions of euros to prop up the Tuscan lender, whose restructuring however "appears rather solid." Italy owns 64% of Monte dei Paschi following a 2017 bailout that cost taxpayers 5.4 billion euros. Rome pumped another 1.6 billion euros into the bank as part of a 2.5 billion euro recapitalisation completed in November. In an interview on Thursday Banco BPM CEO Giuseppe Castagna said Monte dei Paschi was "too big a mouthful" for his bank to swallow.

☆ Enel signs state-backed credit line worth 12 bln euros
▼ + stars: | 2022-12-23 | by ( Francesca Landini | ) www.reuters.com time to read: +2 min

MILAN, Dec 23 (Reuters) - Enel (ENEI.MI) and a pool of banks signed a 12 billion euro ($12.74 billion) credit facility to fund margin calls linked to the group's derivative trades, Italy's biggest utility said. The financing is 70% guaranteed by the Italian export credit agency SACE and has a term of about 18 months, Enel said on Friday. As anticipated by Reuters, the credit line is part of the Italian government's efforts to shield the country's utilities against volatility on energy markets. Other Italian utilities are expected to apply for the SACE guarantee scheme. Italy's second-biggest utility A2A (A2.MI) told Reuters on Tuesday it would tap the credit facility backed by the credit export agency in January.

☆ Credit Agricole strikes bancassurance deal with Italy's Banco BPM
▼ + stars: | 2022-12-23 | by ( ) www.reuters.com time to read: +1 min

The deal allows the provision of non-life insurance products and related services through BBPM's networks for a 20-year period. It also stipulates that the French bank's Credit Agricole Assurances (CAA) division will buy from Banco BPM 65% of the share capital of both Vera Assicurazioni and Banco BPM Assicurazioni. "We are very pleased that our long-standing strategic partnership with Banco BPM will soon be strengthened," Credit Agricole CEO Philippe Brassac said in a statement. Credit Agricole has a 9.18% stake in Banco BPM, Italy's third-largest bank behind Intesa Sanpaolo (ISP.MI) and UniCredit (CRDI.MI). Three weeks ago, Banco BPM picked Credit Agricole over a rival bid from French insurer AXA (AXAF.PA) to start exclusive talks over a non-life insurance partnership.

☆ ECB sets core capital threshold for Italy's Intesa at 8.88% from 8.81%
▼ + stars: | 2022-12-15 | by ( ) www.reuters.com time to read: 1 min

MILAN, Dec 15 (Reuters) - The European Central Bank has set the minimum threshold for Intesa Sanpaolo's (ISP.MI) core capital at 8.88% for next year, fractionally higher than the current 8.81% requirement, Italy's biggest bank said on Thursday. Intesa's best-quality capital ratio stood at 12.4% at the end of September applying in full regulations which are still being phased in. Reporting by Valentina Za, editing by Gianluca SemeraroOur Standards: The Thomson Reuters Trust Principles.

☆ ECB to raise deposit rate by 50 bps on Dec 15 as bloc enters winter recession: Reuters poll
▼ + stars: | 2022-12-09 | by ( Jonathan Cable | ) www.reuters.com time to read: +4 min

According to the Dec. 5-8 Reuters poll, banks will earn 2.00% on deposits after policymakers meet on Thursday, the most since 2009. The refinancing rate will also move up by 50 basis points, to 2.50%. When it last met in late October, the Governing Council topped up key rates by 75 basis points. The U.S. Federal Reserve is also widely expected to downshift to a 50 basis point move following four consecutive 75 basis point increases at the conclusion of its policy meeting on Wednesday, the day before the ECB decision. Findings in the poll agreed and showed inflation would top out this quarter, at 10.3%, and then decline.

☆ UniCredit CEO Orcel has leverage in pay debate
▼ + stars: | 2022-12-06 | by ( Lisa Jucca | ) www.reuters.com time to read: +4 min

Under UniCredit’s remuneration policies, Orcel receives 2.5 million euros in salary, with the potential for twice that via an annual bonus. A regulatory cap prevents UniCredit from paying its CEO a bigger bonus, so the board may have to hike his fixed salary to pay him more. UniCredit Chairman Pier Carlo Padoan said Orcel has not asked for a pay rise. Follow @LJucca on TwitterloadingCONTEXT NEWSItalian lender UniCredit will review the pay package of its Chief Executive Andrea Orcel ahead of its 2023 general meeting. Orcel’s pay package envisages a fixed salary of 2.5 million euros a year and a bonus of up 5 million euros.

But key officials in Giorgia Meloni's right-wing government have expressed strong reservations about CDP's plans for TIM, making a non-binding bid from the state lender for the network unlikely, three sources told Reuters. Top government officials are expected to meet later on Monday to discuss plans for TIM, among other issues. Marking a break with the past, Meloni on Friday entrusted the government's broadband strategy to Cabinet Undersecretary Alessio Butti, who has openly criticised CDP's plans for TIM. Economy Minister Giancarlo Giorgetti last week reiterated that the government wants to win control of TIM's network which is deemed of strategic interest, adding such a goal can be reached in "several ways". Giorgetti also warned that Butti's plans for TIM needs to be extensively discussed within the government.

☆ ION discussing earn-out price clause with DK in Prelios deal-sources
▼ + stars: | 2022-11-23 | by ( Valentina Za | ) www.reuters.com time to read: +2 min

The two sources close to the matter said ION and DK were discussing a so-called earn out clause, which would see ION pay part of the price at closing and the rest once the business hits certain financial targets. ION and DK declined to comment. Sources had told Reuters earlier this month ION was in discussions with DK over a potential acquisition of Prelios, on which the New York-based fund has put a 1.4 billion euro ($1.44 billion) price tag. Shortly before that, ION had snatched for 1.5 billion euros Italian banking software firm Cedacri. U.S. fund DK first invested in Prelios in 2017, buying other investors to take it private.

☆ Italy's Intesa agrees further 500 euro one-off payment to staff
▼ + stars: | 2022-11-22 | by ( ) www.reuters.com time to read: +1 min

MILAN, Nov 22 (Reuters) - Italy's biggest bank Intesa Sanpaolo (ISP.MI) has agreed with unions a further 500-euro ($513.45) one-off payment to help staff cope with soaring inflation, the sector's largest union FABI said on Tuesday. Intesa had announced with first half earnings a previous 500 euro one-time payment for its employees. The contributions concern 70,000 workers in Italy excluding executives, Intesa said, adding that the two payments would cost the bank around 87 million euros. Intesa is currently engaged in broad ranging discussions with unions over remote-working arrangements and the introduction of a four-day working week, to help the bank save on energy costs. ($1 = 0.9738 euro)Reporting by Valentina Za; editing by Agnieszka Flak, Alvise Armellini and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

☆ Intesa Sanpaolo repays around 13 bln euros in TLTRO III funds
▼ + stars: | 2022-11-18 | by ( ) www.reuters.com time to read: 1 min

MILAN, Nov 18 (Reuters) - Italy's largest bank Intesa Sanpaolo (ISP.MI) said on Friday it had repaid around 13 billion euros ($13.48 billion) in ECB's Targeted Longer Term Refinancing Operation (TLTRO) III funds. The European Central Bank has given banks an incentive to get rid of those loans by taking away a rate subsidy last month. It was its first move to mop up cash from the banking system and the first step towards unwinding its massive bond purchases. The early repayment leaves Intesa with 102 billion euros in outstanding TLTRO funds, the bank said in a statement published on its website. ($1 = 0.9646 euros)Reporting by Valentina Za; Writing by Gianluca Semeraro, Editing by Agnieszka FlakOur Standards: The Thomson Reuters Trust Principles.

☆ China reopening hope puts wind in Alibaba sails
▼ + stars: | 2022-11-18 | by ( ) www.reuters.com time to read: +2 min

Just ask China's $220 billion e-commerce giant Alibaba (9988.HK), whose New York stock has rallied by a third this month despite tepid performance from its annual Singles Day shopping festival and so-so quarterly results. Revenue from the domestic commerce unit, accounting for nearly two-thirds of Alibaba's top line, fell 1% year-on-year, to $19 billion. Boss Daniel Zhang's cost cuts are paying off, though: the overall adjusted EBITDA margin improved three percentage points to 21%. Zhang's messaging on China's gradual reopening probably resonated with investors more. Shares of Alibaba, rivals JD.com (9618.HK) and Pinduoduo (PDD.O) and other Chinese stocks jumped, too.

☆ No China is no fix for Britain’s industrial woes
▼ + stars: | 2022-11-17 | by ( ) www.reuters.com time to read: +2 min

LONDON, Nov 17 (Reuters Breakingviews) - The British government has blocked the sale of a silicon wafer factory in Wales to a subsidiary of China’s Wingtech Technology (600745.SS). It’s a sign of the growing wariness among western governments of the risks involved in Chinese investment. The decision to force Netherlands-based Nexperia to sell most of its stake in the Newport Wafer Fab business isn’t illogical. The plant makes basic silicon wafers, used in chips for switches in domestic appliances such as vacuum cleaners. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Target is hurting more than American consumers
▼ + stars: | 2022-11-16 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, Nov 16 (Reuters Breakingviews) - The devil is in the details of Target’s (TGT.N)hellish run. Target is partly hostage to what’s on the shelves, including apparel, electronics and other discretionary items. Rival Walmart (WMT.N), which generates more than half its sales from food, delivered better results on Tuesday. The U.S. Commerce Department just reported that retail sales grew 1.3% in October from September because consumers were buying cars, furniture and clothes. Those numbers suggest that Target is hurting more than American shoppers.

☆ Sea is turning the tide
▼ + stars: | 2022-11-16 | by ( ) www.reuters.com time to read: +2 min

BENGALURU, Nov 16 (Reuters Breakingviews) - The loss-making Southeast Asian technology giant’s decision to ditch its growth-at-all-costs strategy is showing results. The $28 billion U.S. listed games-to-payments company Sea (SE.N) has been exiting some markets and slashing jobs and discounts. Overall group revenue grew 17% to $3.2 billion in the quarter, beating analyst estimates. Sea is now working toward achieving Shopee’s adjusted EBITDA breakeven by the end of 2023. The improvements will shore up support for its decision to remain in Brazil, a big emerging market.

☆ Intesa’s payments exit sends awkward message
▼ + stars: | 2022-11-15 | by ( ) www.reuters.com time to read: +2 min

MILAN, Nov 15 (Reuters Breakingviews) - Carlo Messina has picked a puzzling moment to get out of Nexi (NEXII.MI). Italy’s biggest bank by market capitalisation, a key industrial partner to the 11 billion euro payments group, sold its entire 5% stake at 8.7 euros a share late on Monday, or 584 million euros. Intesa, which sold its retail payments business to Nexi for 1 billion euros and entered a long-term partnership, will remain a key business ally. Analysts believe Nexi is worth 12 euros a share, according to average target prices from Refinitiv. Intesa’s hurried sale suggests the stock, which has already lost more than a third of its value this year, may have further to fall.

☆ Jeff Bezos is an unlikely personal finance guru
▼ + stars: | 2022-11-15 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, Nov 15 (Reuters Breakingviews) - Jeff Bezos, the man who sells everything, is telling shoppers to stop buying everything. It may seem odd that Bezos, who built a $1 trillion company on ease and convenience, is doling out financial advice that cuts against his business interests. E-commerce is only 14.5% of overall retail sales of some $1.8 trillion, according to the U.S. Census Bureau. Meanwhile pure-play e-commerce companies that don’t have their roots in real-world stores represented 8% of retail sales in the second quarter compared to 5.7% in the second quarter in 2019, reckons UBS. In short, Amazon can grow even when retail doesn’t, meaning Bezos the billionaire can afford to be the unlikely voice of parsimony.

The European Central Bank (ECB), which supervises euro zone banks, believes some lenders have overly optimistic assumptions about the economy, based on models that cannot fully capture the damage from the current bout of inflation, the sources say. Source: S&P Global-EBAMorgan Stanley estimates euro zone banks will pay out 40 billion euros ($40 billion) in 2022 dividends plus an additional 60 billion euros in share buybacks between this year and next - an outsized return by recent standards. "It's not a good idea to pay out capital during a recession," Intesa's Chief Executive Carlo Messina told analysts last week. "With the economy entering recession, the time of massive bank payouts is over," Marco Troiano, a managing director at Scope Ratings, said. "Running down capital cushions would weaken banks."

REUTERS/Antonio ParrinelloROME, Nov 8 (Reuters) - Italy's efforts to secure financing to keep an Italian oil refinery owned by Lukoil up and running despite new sanctions on Russia kicking in next month have hit obstacles, three people close to the matter said. Lukoil is not under sanctions, but ISAB suppliers and lenders had been wary of dealings with a Russian entity following the Ukraine conflict. A sale to non-Russian buyers would avert the closure of the ISAB plant, which directly employs some 1,000 workers. Lukoil could provide temporary funding for ISAB, based on the minutes of a ministerial meeting held on Oct. 17 to discuss ISAB financing. Rome is also considering buying a minority stake in the refinery to protect Italian interests, one of the sources said.

☆ European stocks set for cautious open after big week for earnings and central banks
▼ + stars: | 2022-11-04 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

European stocks are set for a tepid open on Friday as markets round out a big week for central bank policy decisions and corporate earnings. The pan-European Stoxx 600 index closed 1% lower on Thursday, with the U.K.'s FTSE 100 the outlier among major bourses, closing up 0.6% after the Bank of England implemented a 75 basis point hike to interest rates. The U.S. Federal Reserve also opted for a 75 basis point hike on Wednesday as central banks around the world continue their aggressive tightening in a bid to rein in inflation. Back in Europe, investors will be looking out for final euro zone PMI (purchasing managers' index) readings from the euro zone for indications as to the resilience of economic activity across the 19-member bloc. Corporate earnings season is winding down, but reports before the bell on Friday came from Soc Gen Telefonica, Aker and Intesa Sanpaolo, among others.

Lukoil's ISAB refinery in Sicily stands to be hit by an embargo on seaborne Russian oil that comes into force on Dec. 5, putting at risk jobs in Italy's poorer south and the country's refining capacity. Although Lukoil is not affected by the sanctions, the ISAB plant has been forced to rely solely on Russian oil after creditor banks halted financing and stopped providing guarantees the refinery needs to buy oil from alternative suppliers. The sources said the government was trying to find ways to ensure the plant can receive financing from lenders and remain operational. The goal is to allow ISAB to buy elsewhere the oil it needs, two of the sources said. A sale to non-Russian buyers would avert the closure of the ISAB plant, which accounts for around 20% of Italian refining capacity and directly employs some 1,000 workers.

☆ UniCredit ups 2022 profit goal after Q3 earnings beat
▼ + stars: | 2022-10-26 | by ( Valentina Za | ) www.reuters.com time to read: +2 min

MILAN, Oct 26 (Reuters) - Italy's No.2 bank UniCredit (CRDI.MI) on Wednesday raised its 2022 profit goal above 4.8 billion euros ($4.8 billion), helped by higher interest rates and lower loan loss provisions that also drove quarterly earnings above forecasts. UniCredit posted a profit for July-September of 1.71 billion euros, well above analysts' consensus forecast of 1.00 billion euros provided by the bank. UniCredit had already improved its 2022 guidance in July, indicating a net profit target of around 4 billion euros. Quarterly earnings were also boosted by much higher than expected trading income, which UniCredit said had been helped by companies' demand for hedging products. The erosion reflects a second share buyback UniCredit is carrying out as it hits a goal of returning 3.75 billion euros of last year's earnings to shareholders.

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