Europe banks: ABN, Credit Agricole slip on earnings; UniCredit advancing on Commerzbank?

Credit: Reuters Studio
Published on May 15, 2019 - Duration: 01:17s

Europe banks: ABN, Credit Agricole slip on earnings; UniCredit advancing on Commerzbank?

Commerzbank shares rose sharply on Wednesday - but then fell back - on reports that UniCredit has stepped up preparations for a potential bid.

ABN Amro and Credit Agricole, meanwhile, disappointed markets with their first-quarter earnings.

David Pollard reports.

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Europe banks: ABN, Credit Agricole slip on earnings; UniCredit advancing on Commerzbank?

Good news for investors in Europe's banks on Wednesday as two heavyweights get closer, reportedly to a tie-up.

And bad, as two others disappoint with their earnings.

ABN Amro, still apparently in choppy waters after its 2008 bailout by the Dutch state reported Q1 net profit plunged by a fifth - to 478 million euros.

Slower growth and low interest rates, it says, could hit future earnings.

Credit Agricole also suffering on Europe's stock markets after a bigger-than-expected fall in first-quarter net profits.

Down 11 per cent to 763 million euros.

The news pulled its shares down by over three per cent.

Though chief executive Phillippe Brassac says future indicators are "green, and widely so." Commerzbank shares, meanwhile, gained close to five per cent - before turning negative on Wednesday after sources told Reuters that Italian bank UniCredit had engaged JP Morgan and Lazard to advise on a possible takeover.

UniCredit has been concentrating on its own turnaround but is thought to have long been interested in expanding in Germany.

The Italian bank's investors, apparently, less so: its shares were down over two percent.

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