Corporate Debt Restructuring Masterclass

18 July 2022 (Mon), 5pm Singapore/HK time

European banks BNP Paribas, BBVA and UniCredit Reported upbeat earnings results:
  • French banking major BNP Paribas reported net income of €2.9bn ($3.4bn) in Q2, a 27% YoY jump. Its domestic markets division saw revenues rise ~10% while investment banking (IB) reported a ~10% fall in revenues. While overall revenues rose only 0.9%, costs came down 2.3%. Its cost of risk was at 38bp of customer loans outstanding, below their 45-55bp range, and down €1.16bn ($1.4bn). The group’s CET1 ratio stood at 12.9% vs. 12.8% in the previous quarter. BNP’s 4.5% Perp was flat at 102.8, yielding 4.11%.
  • BBVA reported net attributable profits at €1.29bn ($1.5bn), up 2.5x YoY and 25% QoQ. Both fee income and trading income grew 31% and 14% YoY The bank said its cost of risk was better than expectations, at 1% vs. 1.17% in Q1 and 1.55% in 2020. The group’s CET1 ratio stood at 14.17% vs. 11.88% in the previous quarter. BBVA’s 6.125% Perp was stable at 108.9, yielding 4.5%.
  • UniCredit reported a net profit of €1.1bn ($1.3bn), up 24.7% YoY. The bank’s trading income and fee income rose 19% and 21% YoY respectively. Fee income was bolstered by “strong gross sales of asset management and insurance products”, they said. Its cost of risk was at 33bp, up 18bp QoQ on account of ‘regulatory headwinds’. The group’s CET1 ratio stood at 15.5% vs. 15.92% in the previous quarter. UniCredit also said it had entered exclusive talks to buy Banca Monte dei Paschi di Siena from the Italian government. UniCredit’s 8% Perp was stable at 111.2, yielding 3.8%.
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