Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on BANCO POPULAR ESPANOL. We currently have 5 research reports from 1 professional analysts.
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Research reports on
BANCO POPULAR ESPANOL
BANCO POPULAR ESPANOL
Operation of truth leaves the group bloodless
03 Feb 17
The group posted a stronger-than-expected quarterly loss, largely driven by the recognition of an understated exposure to problematic assets. Last’s year capital increase was not commensurate to this un-planned clean-up effort, leaving the group with a revived strong equity shortage issue.
Quarters follow one another and look alike
28 Oct 16
Like in the previous quarter, the group posted no profit in Q3, in line with its objective to devote all its pre-provision earnings to increasing the NPA coverage this year. The bulk of the effort will be made in Q4 with consensus (and AV) expecting around €2.5bn of losses. Management changed its earnings presentation, separating core and non-core assets. Unfortunately, this resulted in an unwelcomed reduction in data disclosure.
The capital increase does not solve everything
30 May 16
The group has launched an unexpected €2.5bn rights issue with pre-emption rights at a €1.25 issue price. The operation will enable the group to align its NPA coverage with its peers and thus to enjoy a similar trajectory in terms of asset quality, cost of risk and profitability normalisation. Above all, the group will comply with the Bank of Spain’s new circular. However, we see the capital increase as under-calibrated leaving some equity shortfall and above all, the group’s structural profitability issue remains un-addressed.
EPS cuts on lower trading income generation
17 May 16
The first quarter results showed top-line pressure driven by the strong competition on SMEs loans and the market’s turmoil. The rapid normalisation of trading income generation expected over the coming quarters will not help. Although the reduction in operating costs is on track with the balance sheet downsizing, the cost of risk normalisation continues to be seen as only very progressive in spite of a confirmed reversal in asset quality trends. As a positive, the ongoing capital generation should enable the group to rapidly meet its equity requirements.
Top line pressure, limited visibility on cost of risk lever
03 Feb 16
Quarterly results suffered strong competitive pressure and elevated cost of risk. The cost of risk normalisation is a major profitability lever but visibility on the pace of reduction remains low, especially if the current global turmoil and the domestic political instability turn into economic slowdown.
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)
Another positive verdict
20 Mar 17
Burford’s results for 2016 produced another outstanding set of figures. Revenue grew by 60% to $163.4m with strong growth in the litigation finance business and an additional boost from a secondary sale in the Petersen case. On an underlying basis net income grew to $114m, a 75% increase despite the investment in growing capacity which increased costs. A combination of ongoing investment and gains and increases on valuation saw the fair value of the litigation assets increase 67% to $559m, underpinned by a growth in invested capital to $394m. With the results statement there was an announcement of a further sale of 9% of the Petersen case at a valuation of 20 times the cost of investment.
Small Cap Breakfast
28 Mar 17
Path Investments—Publication of prospectus from the Energy Investment Company. Raising £1.4m. Admission due on or around 30 March | Franchise Brands—Schedule 1 detailing £28m reverse takeover of Metro Rod. Admission expected 11 April | Alpha FX Group— Schedule 1 from the foreign exchange provider focused on managing exchange rate risk for UK corporates that trade internationally. Fundraise TBC. Admission expected 7 April. | K3 | Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. | Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Tufton | Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.
Small Cap Breakfast
23 Mar 17
K3 Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march.