MILANO – It took him over four months, but there European Central Bank authorized Intesa Sanpaolo the repurchase of shares up to 3.4 billion euros, announced with the strategic plan at the beginning of February and approved by the bank’s shareholders’ meeting on 29 April. The transaction remained subject to the approval of credit supervision, which has just arrived, and Intesa Sanpaolo has started the repurchase, with an initial amount of 1.7 billion euros.
S & p: Italian banks will be among the biggest beneficiaries of the rate hike in Europe
by Andrea Greco
According to a note, the transaction “is aimed at canceling the shares for a total maximum outlay of 3.4 billion and involves up to 2.61 million shares”. The first resolution of the Intesa Sanpaolo board of directors concerns “an initial program for an outlay of 1.7 billion”, while the decision regarding the execution for the remaining authorized amount “. The purchases of this first tranche will start on July 4th, to be completed by the end of October.
Buyback, the optimism of Unicredit
Il buyback it is an instrument of Anglo-Saxon inspiration, widely used in Wall Street and which helps to support the prices of the companies subject to repurchases, while increasing the remuneration for their shareholders. For the CEO Carlo Messinawhich in the latest strategic plan of Intesa Sanpaolo confirmed a historic and solid distribution to shareholders of 70% of the total annual profits, is a novelty.
The end of the Popolari: thus the neighborhood bank disappeared
by Andrea Greco
The rival Unicredit had announced a buyback last December, in the new strategic plan of the ad Andrea Orceland has the first tranche of 1.6 billion euros in progress, while another billion is subject to the situation of the bank in Russia. “We will comment on this at the end of the second quarter. At the moment we are still following the plan and we are optimistic that we will reach the objectives and therefore we will be able to ask for the authorization to distribute the other billion”, said UniCredit CEO Andrea. Orcel, at the Italian ceo conference in Mediobanca.
US banks, 80 billion in coupons and buybacks
The 6 billion euros of share buybacks for the two largest Italian banks are a significant sum, but pale in comparison to the 80 billion, albeit dollars, that the shareholders of the US credit giants are preparing to collect between coupons and buybacks. After passing the Fed’s stress tests without major obstacles, coffers are about to open and shareholders will be able to bring us wheelbarrows.
“The banks did not do stock repurchases during the Covidso the last buyback cycle will be quite high, to reduce excess capital – explained a Bloomberg Jason Goldberganalyst of Barclays who carried out the counts -. We are certainly in a period of increased economic uncertainty, but nonetheless several stocks in the sector remain attractive. “
Jp Morganthe largest and most profitable bank Usa, should distribute a total of 19 billion, between 13 in coupons and 6 in buybacks. He heels her Bank of America with 8 billion in coupons and 7.5 in repurchases, then Wells Fargo with 5.3 billion in coupons and 10 in repurchases, Morgan Stanley with 5.3 billion coupons and 7.5 billion repurchases, Citi (4.1 billion coupons and 7.5 repurchases), finally Goldman Sachs with 3 billion coupons and 3 billion repurchases.