SocGen pulls the sprint to the banks. New rumors on Banco Bpm, test accounts also for MPS

Rally even today of banks in the stock exchange with Societe Generale (+ 4.5% in Paris) to lead the rises despite the sharp decline in profits. THE'EURO STOXX Banks index marks a leap of 1.7% in the first hour of trading, bringing the balance of the last week to almost 6%. The Italian banks with are no less Unicredit to set the pace at over + 3% owing to having concluded one maxi-securitization of 4.1 billion. Today the board of directors is on the agenda for the approval of the quarterly accounts of the bank of Piazza Gae Aulenti which will be announced tomorrow before the start of trading.

Bene Intesa, now Banco and MPS

Yesterday the dances were open Intesa Sanpaolo which was able to produce profits of more than a billion euros by beating consensus expectations.
Today the boards of Banca MPS and Banco BPM are also scheduled. The latter is followed by rumors with foreground the new plan, arriving at the beginning of 2020, and the sale of Pro Family. According to the latest indiscretions of the Sole 24 Ore, the consumer credit subsidiary would receive preliminary offers in the order of 90 million euros. The final suitors should be 3-4 subjects with English group Chenavari in pole position. According to the Confindustria daily, there is also the Apollo and Atlas funds.

Banco will release accounts today after the markets close. According to estimates by Mediobanca Securities, the banking group could announce a net profit of 98 million euros, down 78% compared to the 443 million recorded at 30 June 2019 and 43% less compared to the same period last year when it recorded profits of 172 million.
The Unicredit accounts will arrive tomorrow instead before the markets start. According to the average of the estimates published on the Unicredit website, the quarterly net profit is seen to reach 1.034 billion euros (from the 1.854 billion in the second quarter of 2019, to 1.029 billion adjusted profit), while the pre-tax profit should settle at € 1.257 billion and net operating profit is expected at € 1.473 billion. The quarterly revenues indicated by the analysts' consensus are instead forecast at 4.58 billion.

SocGen profits in fall, but the financial solidity is strengthened

This morning Societe Generale reported data for the third quarter of 2019 with net profits of 854 million euros, worse than analysts' expectations, which had forecast a value of 929 million euros. The drop in profits on an annual basis was 35%, also caused by the cost of 113 million euros that the institute had to take on to close some activities in the Balkans.
Revenues were also disappointing at 5.98 billion against the estimated 6.08 billion. The French giant has served the 20% year-on-year decline in its stock trading division. SocGen complained about "the adverse market conditions of August" and the lower demand from customers for structured products.
The market looks at the net improvement in the CET Tier 1 ratio, which rose from 11.2% last year to 12.5%. "Our number one priority is capital. This is the main focus of our shareholders, "said CEO Frederic Oudea.