The CEO agenda: Jean Pierre Mustier, UniCredit
Lead by example.
Euromoney's latest coverage of Europe’s fourth-largest economy as its banking sector stands on the brink.
Sofferenze loans – literally, 'the suffering' – make up 60% of Italy’s non-performing loan stock. At €200 billion, that’s some 11% of the country’s GDP. Fears about the fate of Europe’s fourth-largest economy as its banking sector stands on the brink have centred around the world’s oldest bank – Monte dei Paschi di Siena. The European Central Bank has had Monte’s feet to the fire to clean up its balance sheet. But, surrounded in Malebolge-like cliffs of bad debt of about €50 billion and having burned through €8 billion of freshly raised capital before, plans to get the bank out of the eighth circle of hell have been fraught with problems. Euromoney has collected its best features from recent months covering the Italian loan problem. Together, they represent a thorough and fascinating look into the Italian banking crisis.
Lead by example.
Italy’s biggest bank is offloading choice bits of its 60,000-strong art collection – in doing so it is going in a different direction to peers like Intesa Sanpaolo.
UniCredit lifer and top Italian speaker to step down as number two; Khayat and Bisagni take wider commercial roles as Burton becomes CIB head.
Harsher-than-expected 100% coverage deadlines; no ‘significant’ impact on capital, insist banks.
Banco Santander’s board has botched the appointment of the bank's next CEO in the clumsiest way possible.
The political tune of 2018 was not to UniCredit’s taste.
Any bank with a gross NPL ratio of 27.5% has a problem – Italy’s Banca Carige can’t avoid insolvency unless it comes up with a radical solution, fast.
Resignations of directors after shareholders failed to approve a capital increase prompt an early intervention
Chance of Société Générale merger remote, but bigger European banks to emerge in ‘medium term’.
Banks in the eurozone periphery have need, and some justification, for a new targeted LTRO.
Italian banks and the government at risk of failure within 12 months; signs of a more reconciliatory attitude to the EU.
Scandals and losses are ending the co-dependency between European banks and retail shareholders, highlighting the conflict of interest in relying on depositors for capital – and showing up a barrier to Europe’s new bail-in framework.
The Italian bank has bought some time with the ECB, but what it really needs is a white knight.
Investors worry that volatility in Italian government bond prices may leave some Italian banks needing to raise capital just as the markets close to them.
A time of crisis is a time for action.
Euromoney talks to ECB Single Supervisory Mechanism board member Ignazio Angeloni about the challenges the SSM faces, and how eurozone integration, and in some cases bank mergers, could help improve European banks’ competitiveness.
A crisis is forcing a spike in small bank mergers in Italy.
Brexit-sparked competition from US banks a good thing, ECB supervisor says; Italian populism ‘a burdensome tax’ on banks.
Analysts warn Italy will be a bigger shock to Europe than anything Turkey has to offer, as potential crises go.
Italy flows up despite populists’ impact on bond yields; warns of peak debt across the West
The crisis in Italy has rocked European assets, but Portugal’s longer-term prospects are bright.
Despite the latest attempts to stymie them, Eurosceptic populists remain the most powerful political force in Italy – largely thanks to anger at a banking crisis, often fanned by the ECB.
The new government is imminent and is expected to announce policies that will cause financial markets to turn their attentions from the recovering economy to unorthodox populism.
Firm buys Credito di Romagna stake; European banking licence adds to appeal.
After a year in the recovery ward, 2017 results show some banks are healing.
Carve out of NPL servicing; minority owner sought for Eurizon.
The elections will deliver a new government, but the old challenges remain.
Italy’s banking crisis might move Mediobanca ever further away from its past as the country’s corporate gatekeeper.
Investors can support their local lenders by preparing to sell them.
Banca Carige pulled off a recapitalization last December that even chief executive Paolo Fiorentino thought difficult.
Any attempt to deal with Europe’s non-performing loans always seems to end up in a fight.
With progress made on profitability, the chief executive is turning to deep-seated organizational challenges
Lenders recoil at new deadlines for 100% NPL coverage; ECB throws spanner in works of Banca Carige capital raising.
An investment fund focused on banks with a slant on Europe and Italy might sound like a recipe for disaster, but Davide Serra of Algebris tells a story of market-beating returns and snowballing AuM, and thinks the best times lie ahead.
Nearly every time Europe’s Bank Recovery and Resolution Directive is called into play, there seems to be a new justification for using public money.
A textbook case, a long-inevitable state bailout and a brazen political fudge: Europe’s BRRD has had something of a rough ride this summer.
Europe’s investor prospects are superficially safer due to economic recovery, but elections in Germany and in Italy, especially, present tail-risks.
As a self-described ‘insider-outsider’, Jean Pierre Mustier’s return to UniCredit has transformed the image of Italy’s biggest bank – inside and out – over an extraordinary 12 months as CEO.
Firm behind Atlante rubbishes private offers for Veneto banks; freed funds for MPS deal a ‘coincidence’.
Just two weeks after Banco Popular’s rescue was hailed as a triumph of Europe’s post-crisis resolution regulation in action, Italian taxpayers are footing the €17 billion bill for the collapse of two long-troubled lenders.
The ECB’s inflation outlook in March gave hope that, after a year in intensive care, European banks are recovering.
An improving eurozone economy is failing to provide investors with encouragement about Italy’s prospects as it comes back into focus after the French elections.
As UBI Banca prepares a new capital raising linked to its purchase of three rescued banks, CEO Victor Massiah says his bank and others can do more to build economies of scale through mergers.
As UniCredit goes from zero to hero, is Intesa taking the opposite route?
Breaking the sovereign/bank nexus has been a priority for policymakers since the global financial crisis.
Setting up a European bad bank is a dauntingly complicated and time-consuming proposition.
Bank warns on AT1 coupon if €13 bln rights issue fails; move highlights importance of capital increase.
European bad bank could incentivize banks to transfer their bad loans, but the problem still won’t be fixed without state aid.
Italy could be clawing itself out of a pit of worry about its banks, according to the latest Euromoney Bank Risk results.
As EGM approves capital increase, lender spells out impact on regulatory capital if things go wrong.
UniCredit CEO Jean-Pierre Mustier has unveiled his new strategic plan for the bank.
It is time European regulators proposed a BRRD that is fit for purpose.
The bank hopes a deal to offload bad debts to Fortress and Pimco will show investors that it is putting its NPL issues behind it
UniCredit CEO Jean-Pierre Mustier has unveiled his new strategic plan for the bank.
Reports of a government plan to buy subordinated bonds and convert them into shares in Monte dei Paschi di Siena suggest that a state-backed rescue is now inevitable.
Investor prospects in Portugal, Ireland, Spain and even Greece have brightened this year, but Italy could still put a damper on the recovery.
The Italian lender’s revised capital plan prompted its share price to plunge 39% in a matter of hours.
Its risk score plunged the most of any country worldwide in Euromoney’s country risk survey in Q3 2016, highlighting how eurozone investors must remain on their toes.
Former BAML and JPM banker takes over troubled bank; share-price fall seen scuppering €5 billion rights issue.
The calming of the political shock of Brexit, with oil prices now receiving Opec support, is preventing global risks from worsening, yet with a referendum looming in Italy, elections in the US and Europe to come, not to mention frail banks and several countries mired in difficulties, it might be the calm before another global storm.
Benign scenarios used by EBA; CCAR reveals greater capital shortfalls.
Italian banks have allowed non-performing loans to swell to such numbers that they are now a central concern for the European and global financial system.
Every proposed scheme for sorting out Italy’s bad debt problems has its own shortcomings.
The bad-debt crisis killing some of Italy's biggest banks looks likely to get worse before it gets any better.
The ECB’s demand for a €1 billion capital increase in the banking union’s first big merger between Banco Popolare and BPM has dowsed hopes for a slew of similar deals that might add value to banks that desperately need it.
The Italian banking sector suffered a spanking in the European Banking Authority’s stress tests last week, but the banking system is not the only issue for the sovereign.
Italy’s banks cannot deal with their NPLs unless they have capital, but they are not being allowed to recapitalize until they have dealt with their NPLs.
ECB demands MPS shed €10 billion loans; last minute private deal scrambled.
Country-by-country assessments of Europe’s banking sector show that risks are at new highs, as the financial services industry struggles to cope with the aftershocks of the 2007/08 crisis.
While the accelerated sales of stakes in Fineco and Pekao signal a new style, UniCredit's returning CEO says HVB still fits with the core Italian business
Under a new CEO, investors in Italy’s biggest bank need to see shock and awe.
Bank backstop fund competes with private equity; doubters say it should be four times bigger.
State-backed Cassa Depositi e Prestiti's (CDP) mission to jumpstart the Italian economy has been met with scepticism.
Mixed regulatory messages cloud the outlook after Italy’s first big bank merger since 2008.
The Single Supervisory Mechanism, the eurozone’s new banking supervisor, is tasked with combating financial fragmentation, building a banking union and, above all, making Europe’s banks investable once again.
Delve into the details of their respective economic and political prospects, and Italy’s investor credentials are seemingly more favourable than Spain’s.
State bad debt scheme to chip not chop; BCC reform could create top-three lender.
Troubled Tuscan lender taps new funding; ABS benefits from ‘safe haven’ status.
Bail-in uncertainties remain; Portugal and Italy mark tough start for BRRD.
Europe’s plan for a bad bank in Italy, it turns out, is to not have a bad bank at all.
Italy, Austria, Germany take brunt of 18,000 job losses; lingering capital doubts overshadow efficiency drive.
International investors are scrambling to establish themselves as the country’s huge NPL market finally starts to creak open.
CFO leaves MPS for UniCredit after new chairman arrives; lack of buyers stymies M&A.
After years of crisis, a quiet revolution is happening in Italian banking.
The onslaught of regulatory change and capital requirements is putting pressure on co-operative ownership of banks across Europe, but especially in Italy.
Renzi’s reforms and favourable winds seem to be working some magic on the country’s numbers.
For European banks, the days when a lack of big international operations was seen as a weakness are gone.
Fineco share price shoots up; rivals set up similar businesses.
Only structural change, not tweaks, will bring a recovery across Italy’s banking sector.