Q2 results were on track but progress remains too slow to attract the long-awaited handsome prince, while the standalone strategy is not a viable/allowed path. ECB’s letter and the stress test failure are forcing management to accelerate the NPL reduction, an operation enabled by the new State guarantee and the creation of the Atlas fund. However, the operation requires a €5bn rights issue to maintain the solvency position while Atlas will be offered warrants as extra protection. ....
