Moody΄s: Potential Positive Elements In Alpha-Bank Merger
Moody’s Investors Service said that Alpha Bank and Eurobank merger could trigger more mergers and acquisitions among Greek banks, according to an announcement.
The firm believes that the merger of the second- and third-largest Greek banks would create the largest financial institution in South-Eastern Europe, with total assets of around €150 billion and 2,276 branches, mainly in Greece and the Balkans.
Moody΄s said that there are potential positive elements in this merger for the resulting bank, as well as for the Greek banking system.
- Higher capital levels, stemming from the above mentioned capital increase and an additional EUR2.1 billion planned through internal capital generation measures, would increase the bank΄s loss-absorption capacity in the context of increased loan losses and possible additional write-downs on their Greek government bond holdings.
- Cost efficiencies through economies of scale and synergies may be realised both in Greece and in the Balkans, where both banks have presence.
- Complementary franchises at the two banks should offer cross-selling opportunities and funding synergies.
- The participation of foreign investors in the deal may improve somewhat the currently negative sentiment of depositors towards the Greek banking system.
- The deal could trigger more mergers and acquisitions among Greek banks, in line with Bank of Greece΄s desire for more consolidation in the system.
(capital.gr)
Ciao Tommy, questa era la tesi sostenuta con forza da AAAA47! o no? Quasi quasi avrei preferito che avesse ragione. Chi sta vendendo allora secondo te, noi???
