Italian lenders climbed in Milan, leading gains in the European Stoxx 600 Banks Index, after the Bank of Italy allowed more flexibility in buying back subordinated bonds.
UniCredit SpA (UCG), Italy’s biggest bank, rose as much as 4.4 percent, and was up 14 cents to 3.93 euros by 11 a.m., giving the bank a market value of 22.8 billion euros ($30 billion). Intesa Sanpaolo SpA (ISP), the second-largest lender, increased as much as 4.8 percent, and was up 5.7 cents to 1.52 euros. The FTSE Italia All-Share Banks Index gained 4 percent.
The Italian central bank’s new regulations meet European buyback rules on hybrid securities. Banks won’t have to simultaneously issue new instruments to replace those being repurchased and don’t need the approval of Italy’s stock market regulator, the Bank of Italy said on its website.
The Bank of Italy will authorize banks to buy back securities that qualify as regulatory capital as long as their financial position isn’t put at risk, it said.
“Assuming just Tier 1 buybacks, the Italian banks could generate roughly 25 basis points of capital,” Giovanni Razzoli, an analyst at Equita SIM SpA, wrote in a note today. “The main beneficiary would be Banco Popolare SC (BP), with a positive impact of 30 bps,” he said.
Banco Popolare, the best performer on the FTSEMIB index, rose 7.8 percent to 1.24 euros, while Banca Monte dei Paschi di Siena gained 7.6 percent to 31 cents.
http://www.bloomberg.com/news/2012-02-01/italian-banks-rise-as-bond-buyback-rules-made-more-flexible-milan-mover.html
UniCredit SpA (UCG), Italy’s biggest bank, rose as much as 4.4 percent, and was up 14 cents to 3.93 euros by 11 a.m., giving the bank a market value of 22.8 billion euros ($30 billion). Intesa Sanpaolo SpA (ISP), the second-largest lender, increased as much as 4.8 percent, and was up 5.7 cents to 1.52 euros. The FTSE Italia All-Share Banks Index gained 4 percent.
The Italian central bank’s new regulations meet European buyback rules on hybrid securities. Banks won’t have to simultaneously issue new instruments to replace those being repurchased and don’t need the approval of Italy’s stock market regulator, the Bank of Italy said on its website.
The Bank of Italy will authorize banks to buy back securities that qualify as regulatory capital as long as their financial position isn’t put at risk, it said.
“Assuming just Tier 1 buybacks, the Italian banks could generate roughly 25 basis points of capital,” Giovanni Razzoli, an analyst at Equita SIM SpA, wrote in a note today. “The main beneficiary would be Banco Popolare SC (BP), with a positive impact of 30 bps,” he said.
Banco Popolare, the best performer on the FTSEMIB index, rose 7.8 percent to 1.24 euros, while Banca Monte dei Paschi di Siena gained 7.6 percent to 31 cents.
http://www.bloomberg.com/news/2012-02-01/italian-banks-rise-as-bond-buyback-rules-made-more-flexible-milan-mover.html
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