Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Euronext Paris  >  BNP Paribas    BNP   FR0000131104

BNP PARIBAS

(BNP)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

European Bank Stocks Hammered After ECB Calls for Dividend Halt Till at Least October

share with twitter share with LinkedIn share with facebook
share via e-mail
03/30/2020 | 05:26am EDT

By Pietro Lombardi

 

Shares in European banks plunged Monday after the Eurozone's central bank asked the region's lenders not to pay dividends or buy back shares during the coronavirus pandemic.

The European Central Bank wants banks to boost their ability to absorb losses and support the economy as the region braces for a sharp economic slowdown caused by the pandemic. On Friday, it asked banks not to pay dividends for 2019 and 2020 at least until Oct. 1, adding that lenders should also avoid buybacks.

"The ECB expects banks' shareholders to join this collective effort," it said.

Shares in European banks traded sharply lower in morning trade. BNP Paribas SA and Banco Santander SA, among the Eurozone's largest banks, fell 6% and 4.3% respectively, while Italy's biggest banks, UniCredit SpA and Intesa Sanpaolo SpA, were down 5.5% and 4.3%.

"European bank balance sheets are already feeling the strain of the economic impact of the current outbreak," Michael Hewson of CMC Markets UK said.

Some banks, like Italy's UniCredit and Dutch bank ING Groep NV have already taken steps to follow the ECB recommendation.

Other are expected to follow suit.

Analysts at Citi said they expect French banks, as well as other Italian banks, to suspend dividend payments.

Monday's sell-off adds to the pain of European banks, which have fallen sharply so far this year. Since the 2008 financial crisis, European banks have strengthened their position, raising capital and cleaning-up loan books. However, the economic fallout from the current crisis will eat into their capital buffers, with significant uncertainty over the pandemic bill making things worse. The coronavirus pandemic has caused widespread economic shutdown as authorities across the region try to contain the virus. Some of Europe's largest economies, like Italy and Spain--which have the world's highest and second-highest death tolls--are under lockdown, and businesses across industries are struggling.

"Capital conserved by refraining from dividend distributions and share buy-backs can also be used to support households, small businesses and corporate borrowers and/or to absorb losses on existing exposures to such borrowers," the ECB said.

 

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

 

Stocks mentioned in the article
ChangeLast1st jan.
BANCO SANTANDER, S.A. -0.81% 2.1325 End-of-day quote.-42.83%
BNP PARIBAS -4.27% 32.255 Real-time Quote.-36.22%
ING GROEP N.V. -3.95% 5.806 Delayed Quote.-43.44%
INTESA SANPAOLO SPA -0.40% 1.5524 Delayed Quote.-33.63%
UNICREDIT S.P.A. 0.01% 7.666 Delayed Quote.-41.13%
WORLD CO., LTD. -3.03% 1567 End-of-day quote.-41.77%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on BNP PARIBAS
08:57aCoffee maker JDE Peet's shares pop 15% after $17 billion virtual IPO
RE
07:04aOil analysts see prices edging up but still capped below $40/bbl - Reuters po..
RE
03:03aU.S. judge orders 15 banks to face big investors' currency rigging lawsuit
RE
02:57aStick or twist? Investors face coronavirus-induced property dilemma
RE
05/28Chinese stock markets ride on earnings' optimism
RE
05/28WALL STREET STOCK EXCHANGE : U.S. Stocks Open Higher as Jobless Claims Fall
DJ
05/28BNP PARIBAS : The Value of Capital Markets to the UK Economy report
PU
05/28U.S. Stock Futures Edge Up as Jobless Claims Fall
DJ
05/28U.S. Stock Futures Edge Up Ahead of Jobless Claims Data
DJ
05/28U.S. Stock Futures Signal Pause in Week's Sharp Rally
DJ
More news
Financials
Sales 2020 42 758 M 47 441 M 47 441 M
Net income 2020 5 373 M 5 962 M 5 962 M
Net Debt 2020 - - -
P/E ratio 2020 8,08x
Yield 2020 4,57%
Capitalization 42 085 M 46 529 M 46 694 M
EV / Sales 2019
Capi. / Sales 2020 0,98x
Nbr of Employees 199 000
Free-Float 86,8%
Chart BNP PARIBAS
Duration : Period :
BNP Paribas Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BNP PARIBAS
Short TermMid-TermLong Term
TrendsBullishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 25
Average target price 42,34 €
Last Close Price 33,70 €
Spread / Highest target 103%
Spread / Average Target 25,6%
Spread / Lowest Target -42,6%
EPS Revisions
Managers
NameTitle
Jean-Laurent Bonnafé Chief Executive Officer & Director
Jean Lemierre Chairman
Philippe Bordenave Chief Operating Officer & Director
Denis Kessler Director
Jane Fields Wicker-Miurin Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
BNP PARIBAS-36.22%46 529
JPMORGAN CHASE & CO.-28.36%304 228
INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED-16.17%251 392
BANK OF AMERICA CORPORATION-26.24%215 676
CHINA CONSTRUCTION BANK CORPORATION-8.17%200 278
BANK OF CHINA LIMITED-14.41%133 095