Ratings agencies are swinging left and right also aiming at Nordic banks all the more often as. Danske Bank (OMX: DANSKE) was under heaviest pressure in today’s trading after Standard & Poor's downgraded it in the morning by one notch A-/A-2 from A/A-1 on Irish property market weakness and the situation in Denmark. The rating now carries a stable outlook. Danske Bank expressed surprise on the move, given a declining trend in Irish property market related losses as of late.
If the S&P downgrade was, the latest bomb from Moody’s caused outrage. After market close it cut ratings of several Danish and Finnish banks by one to three notches. Danske Bank, Jyske Bank (OMX: JYSK) and Sydbank (OMX: SYDB) were slashed two notches deposit rating Baa1 and Spar Nord Bank (CPH: SPNO) by one notch. Several specialised credit institutions saw their ratings cut by three notches in a single go. In Finland Danske’s subsidiary Sampo Bank to deposit grade A2 and Pohjola Bank (HSE: POH1S) to baa2
Showing posts with label Pohjola. Show all posts
Showing posts with label Pohjola. Show all posts
Thursday, 31 May 2012
Wednesday, 3 August 2011
Couple of Finnish financial sector reports
Pohjola Bank plc (HSE: POH1S) reported quarterly performance improved on last year. Consolidated Q2 earnings were slightly over 100 million Euros. Banking earnings were 39 million, Non-Life insurance earnings were 49 million and Asset Management earned 7 million. The first half results are the best in history for the bank and outlook remains for higher earnings in 2011 than in 2010. The stock is up slightly in a sharply negative market. The report is available here.
Aktia (OMX: AKTAV) is faring worse as the share is down 4% weakened net interest income adversely affected operating profit. The reason behind this was the effect of interest rate hedges tailing off. Second quarter operating profit nearly halved compared to last year to 12.1 million Euros. Aktia now definitely states that 2011 result will be lower than in 2010. Earlier the company said it will probably be lower. The report is here.
Aktia (OMX: AKTAV) is faring worse as the share is down 4% weakened net interest income adversely affected operating profit. The reason behind this was the effect of interest rate hedges tailing off. Second quarter operating profit nearly halved compared to last year to 12.1 million Euros. Aktia now definitely states that 2011 result will be lower than in 2010. Earlier the company said it will probably be lower. The report is here.
Monday, 18 July 2011
Elcoteq to insolvency proceedings
Elcoteg (OMX: ELQAV) said after the bell that Elcoteq's RCF lenders have decided to accelerate the outstanding revolving credit facility despite Elcoteq’s pleas for them not to do so in connection with the planned restructuring of the companys debt via a potential deal with Platinum Equity. Elcoteq will apply for controlled management insolvency proceedings to be able to continue operations.
Danske Bank (OMX: DANSKE) gave the notice to Elcoteq and is acting as an agent on behalf of other revolving credit facility lenders RBS, SEB, Nordea, Pohjola, Banco Bilbao Vizcaya Argentaria, UniCredit Bank and HSH Nordbank.
Elcoteq is blaming the company’s lenders harshly saying as follows: “In the Company's view, the lenders' act shows total disregard of the Company's customers, suppliers and close to 7000 employees as well as other stakeholders.”. While it can be argued that it might not have been in the best interests of the lender in question to do so, lenders have every right to do just that when company does not meet its obligations.
In a bizarre twist, investors drove up Elcoteq's stock price after the Platinum Equity announcement, which contained the notice that Elcoteq is unable to repay the remaining 48.5 million Euro on its revolving credit facility. Now investors will in all likelihood feel pain stemming from that decision.
Danske Bank (OMX: DANSKE) gave the notice to Elcoteq and is acting as an agent on behalf of other revolving credit facility lenders RBS, SEB, Nordea, Pohjola, Banco Bilbao Vizcaya Argentaria, UniCredit Bank and HSH Nordbank.
Elcoteq is blaming the company’s lenders harshly saying as follows: “In the Company's view, the lenders' act shows total disregard of the Company's customers, suppliers and close to 7000 employees as well as other stakeholders.”. While it can be argued that it might not have been in the best interests of the lender in question to do so, lenders have every right to do just that when company does not meet its obligations.
In a bizarre twist, investors drove up Elcoteq's stock price after the Platinum Equity announcement, which contained the notice that Elcoteq is unable to repay the remaining 48.5 million Euro on its revolving credit facility. Now investors will in all likelihood feel pain stemming from that decision.
Friday, 15 July 2011
Nordic banks pass stress tests
European Banking Authority has published results of the 2011 EU-wide stress tests for 90 banks in 21 countries. All 10 Nordic banks involved in the latest stress tests passed comfortably. They were Nordea Bank (OMXS: NDA, OMXH: NDA1V), Skandinaviska Enskilda Banken (OMX: SEB A, STO: SEB C), Svenska Handelsbanken(OMX: SHB A) and Swedbank(OMX: SWED) from Sweden, Danske Bank (OMX: DANSKE), Jyske Bank (OMX: JYSK), Nykredit Bank and Sydbank (OMX: SYDB) from Denmark, DNB NOR (OSE: DNBNOR) from Norway and Pohjola Bank (HSE: POH1S) as a part of OP-Pohjola group from Finland.
Eight banks were below 5% Core Tier 1 T capital threshold and sixteen banks between 5% and 6% CT1R. EBA is formally recommending national supervisory authorities to require those banks under 5% CT1R to promptly remedy capital shortfall. Those failing the tests were all small banks. Five of them are in Spain, two in Greece and one in Austria.
While stricter than the tests last year, these tests have been also been blamed too soft and authorities are worried markets will view the fact that the tests do not include Greek default provision as a reason to panic. Also some have worried about the great detail that banks are revealing about their specific exposures to provide bad incentives. More information is available here.
Eight banks were below 5% Core Tier 1 T capital threshold and sixteen banks between 5% and 6% CT1R. EBA is formally recommending national supervisory authorities to require those banks under 5% CT1R to promptly remedy capital shortfall. Those failing the tests were all small banks. Five of them are in Spain, two in Greece and one in Austria.
While stricter than the tests last year, these tests have been also been blamed too soft and authorities are worried markets will view the fact that the tests do not include Greek default provision as a reason to panic. Also some have worried about the great detail that banks are revealing about their specific exposures to provide bad incentives. More information is available here.
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