After unofficial information that PZU wants to sell Alior Bank, Alior’s shares grow by over 13% after 3 p.m. In the first part of the session, the bank’s shares were under the line.
PZU wants to sell Alior Bank – informed on Monday the .pl election portal, citing unofficial information.
Alior Bank’s rate shot up. The bank may go on sale
“This would be another big change in the balance of power in the banking market, especially since – as our information shows – Alior is not interested in a state bank or other state institution. This would mean that the bank with foreign capital will most likely increase by Alior’s assets ” – napisano.
According to the newspaper, this decision can be understood only seemingly, now Alior looks like a rotten egg – it has a lot of bad credit and a record low stock market valuation – but when making this decision now, PZU will probably have to offer a very competitive price.
– I am surprised and would be skeptical about it. Assets sell well when the economic situation is good and there is good performance. Currently, when looking at the banking industry, we can see that WIG Banki is at historical lows, the ratios are at levels from several years ago. From the current perspective, finding a buyer would be a big challenge, and the transaction price would probably be low – Sobiesław Kozłowski from Noble Securities tells the newspaper:
Banks under pressure
The analyst is right. Until now, banks were one of the biggest losers in the pandemic. Interest rates close to zero, recession and subsequent reports of the National Bank of Poland on the deteriorating system efficiency and profitability of banks in the country led the market to beat the industry’s course below the crash from the first wave of the coronavirus.
WIG-Banki broke last week’s level of 3.5 thousand. pointswhich means the stock is the worst since January 2009 – at the heart of the collapse caused by the global economic crisis.
Central bank analyzes show that the downward trend in banks’ profitability will continue in the following quarters and it is possible that the sector as a whole will record a loss in 2021 – President Adam Glapiński announced during his speech at the “Warsaw International Banking Summit”.
In his opinion, the main factor weighing down on banks’ results will not be lower interest rates what progressive write-offs for expected credit losses.
The PZU Group has 31.91 percent. Alior Bank shares.