Spanish Banks Rise After CaixaBank Real-Estate Sale, Fed Stress Tests
June 29 2018 - 6:27AM
Dow Jones News
By Alberto Delclaux
Shares in Spanish banks rose Friday after a flurry of good news
on Thursday, including the agreement reached by CaixaBank SA
(CABK.MC) to sell most of its real-estate business to Lone Star and
positive results from the U.S. Federal Reserve's stress tests.
CaixaBank on Thursday said it would sell 80% of its real-estate
portfolio to two Lone Star funds. The Spanish lender said the price
hadn't been determined yet, but gave an initial valuation for the
whole portfolio of about 7 billion euros ($8.1 billion).
The move followed an earlier media report that Banco de Sabadell
SA (SAB.MC) had received seven offers for four portfolios of
troubled assets, valued around EUR10.80 billion.
At 0938 GMT, CaixaBank traded 4.7% higher, while Sabadell shares
were up 4.6%. BBVA and Santander trailed behind, rising
respectively by 3.0% and 2.0%. The last two banks on Thursday
passed the Federal Reserve's stress tests, alongside other
peers.
CaixaBank's real-estate business sale was well received by
analysts, with Bankinter pointing out it improved its balance sheet
and reduced capital consumption, while Jefferies said it will bring
the bank's non-performing asset ratio well below peer average
levels.
Analysts at Sabadell wrote in a note that the news was "very
positive," as the sale will rid the bank of its greatest weakness
and improve profitability.
Write to Alberto Delclaux at alberto.delclaux@dowjones.com
(END) Dow Jones Newswires
June 29, 2018 06:12 ET (10:12 GMT)
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