Western Europe

The UK has been hit by Brexit as well as the pandemic, making for poor returns and a weaker recovery. UBS argues that this allows investors to buy while it is cheap.

Banks are guiding to lower cost of risk in 2021, but government support and forbearance make the true state of their loan books hard to discern.

A primarily national approach to post-Covid bad debt has cut adrift states such as Greece and Portugal, making future banking crises more likely.

UK-based banks will continue to lose out and international banks in London will transfer more staff and capital to the EU.

Anchor investors usually come into a Spac through a pre-merger Pipe deal. But the latest Europe-focused vehicle has brought them in from the very start.

The fintech’s fast growth highlights the large banks’ inability to adapt their technology to provide basic finance to small businesses.

The consummate dealmaker appeals to shareholders and the board, by being an Italian with a big international profile.

The ECB is desperate for banking consolidation. Cross-border deals remain unlikely, but wholesale combinations may be coming.

Governor of the Bank of England Andrew Bailey rejects the unsound decisions of the EU.

Less pain in the downturn means less gain in an upturn.

An abundance of low-cost finance and soaring stock market valuations are driving M&A towards record levels. But as M&A fever spreads, so riskier deals based on more dubious logic are appearing.

Capital is already shifting out of the UK and people will follow, leaving the big Brexit question: can the EU take advantage to complete its capital markets union?

The pan-European payments initiative benefits from links to many of Europe’s largest banks – and has fintech in its sights.

The latest move by an asset class that just can’t keep out of the news is less surprising than it might appear.

European bank shares have rallied even though the pain of loan losses still lies ahead. It is also not clear how they will repay emergency ECB funding

Asset managers and owners are scrutinizing firms’ climate commitments like never before, as HSBC is discovering.

UK bank urged to set timeline for fossil-fuel financing phase-out.

SocGen appears willing to accept lower volumes as the price for avoiding losses of the kind it experienced in 2020.

With investment in technology supporting its Crédit du Nord merger, the bank hopes that product partnerships and a lower cost-to-serve will make it stand out in French retail.

In rushing to oust chief executive Jean Pierre Mustier halfway through the reporting cycle, UniCredit’s board may have revealed its weaknesses, not its strength.

Wealth managers profited from the volatility of 2020. With the same beneficial gyrations unlikely in 2021, Victor Matarranz, global head of Santander Wealth Management and Insurance at Banco Santander, says the hard work starts now.

Litigation funding has surged in recent years. The asset class is catnip to yield-hungry investors, with funders expanding from their roots in Australia and the UK to tap new markets from Germany to Brazil and the US.

As government debt burdens keep rising to fight the virus, so do the chances of sudden sell-offs that could suck all markets into a vicious downward cycle.

UniCredit entered the Covid-19 crisis flush with capital. That money was earmarked for dividends and share buybacks. So far, it has gone on frontloading loan write-offs.

It’s easier to reach your destination if you know where you’re going.

The transformation plan appears to be working and as the investment bank regains market share, Deutsche looks better set for the coming consolidation.

The past year has brought new challenges for Crédit Agricole’s partnerships in products and distribution. But the wave of bank M&A sweeping Europe is also an opportunity – as its Creval deal shows.

Covid-19 has hit the Spanish lender particularly hard, but the pandemic could spur a longer-term strategic shift.

Every bank has had to balance Covid and geopolitics in 2020, but few have had it harder than HSBC

The investment bank has proven its value in a tough year, but revenue stability is the challenge ahead.