Business

Cost savings may drive more Spanish bank mergers, say executives

Above Article Content Ad

CaixaBank’s brand is seen on high of the corporate’s headquarters in Barcelona, Spain, September 17, 2020. REUTERS/Albert Gea/File Picture

  • Spanish banks below extra stress to chop prices
  • Unicaja sees further financial savings from Liberbank acquisition
  • Caixabank says financial savings more durable in cross-border offers

MADRID, Sept 29 (Reuters) – Value financial savings arising from home consolidation within the Spanish banking sector ought to be a driver for extra potential offers, financial institution executives instructed a monetary occasion in Madrid on Wednesday.

Dealing with extremely low rates of interest and the influence of the COVID-19 pandemic, European banks are below rising stress to chop prices, both on their very own or via tie-ups.

“Such offers, when performed accurately, make loads of sense and assist make the enterprise extra worthwhile and sustainable,” Unicaja Chief Government Manuel Menendez instructed the discussion board.

Spain now has 10 banks, down from 55 earlier than the 2008 monetary disaster, with current offers together with Caixabank’s acquisition of Bankia and Unicaja’s deal to purchase Liberbank. The offers have been accompanied by guarantees of price financial savings.

“Personally, I feel there will probably be extra (mergers), I do not know when or who and I do not suppose it’s going to occur tomorrow,” Caixabank CEO Gonzalo Gortazar stated.

Gortazar stated “supervisors have been clearly endorsing publicly to pursue this path,” citing the low profitability of banks as one of many sector’s structural weaknesses.

However he stated it might be extra sophisticated to generate price financial savings with cross-border transactions in Europe.

In July, Caixabank raised its annual price financial savings from the Bankia deal to 940 million euros ($1.1 billion) from 770 million euros. The deal created Spain’s largest home lender. .

As a part of its Liberbank deal that created Spain’s fifth largest lender, Unicaja stated it aimed to avoid wasting 192 million euros on gross prices by 2023.

Unicaja’s Menendez stated on Wednesday the financial institution would ship on these financial savings and added that there “is upside for added synergies that ought to come up sooner moderately than later.”

Caixabank has introduced it might lower about 6,450 jobs to satisfy its price financial savings. Unicaja has but to present particulars about its restructuring plan.

($1 = 1.1714 euros)

Reporting by Jesús Aguado and Emma Pinedo; Modifying by Mark Potter and Edmund Blair

:

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button