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 Sydbank. Show all posts
Showing posts with label Sydbank. Show all posts
Thursday, 31 May 2012
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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