In analysis by the Financial Times showed that the sale of bank shares by European governments has surged over the past 12 months, generating over 16 billion euros. However, these governments are recovering only a fraction of the taxpayer money they invested in domestic banks about 15 years ago to save them from collapse.
The Greek government, as noted by the Financial Times, provided 50 billion euros to the country’s four largest banks during its prolonged debt crisis.
Over the past year, it has collected more than 1.7 billion euros from the sale of bank shares in Alpha Bank, Eurobank, and Piraeus Bank. Additionally, it has sold 1 billion euros worth of shares in the National Bank of Greece and is expected to sell its remaining 18% stake in the coming weeks.
However, the largest seller over the past year has been the UK Treasury, which sold 5.5 billion pounds worth of shares in NatWest, reducing its stake from 38.5% to just under 18% since December.
The UK government had injected 45.5 billion pounds into NatWest – the then Royal Bank of Scotland – during two bailout programs in 2008 and 2009, gaining an 84% stake in the company. It has since been gradually selling its bank shares and receiving dividends.
Last week, the Dutch government sold 1.2 euros billion worth of shares in ABN Amro, though it still retains a 40.5% stake in the bank, which it bailed out with 22 billion euros in 2008.
Ireland’s government also raised 2.6 billion euros in the past 12 months by reducing its stake in AIB, which received 21 billion euros in taxpayer support, from 46% to 22%.
Andrea Orcel, known as a dealmaker, made his first major acquisition as UniCredit’s CEO last year, agreeing to purchase the Greek state’s stake in Alpha Bank and acquiring its Romanian unit. In July, UniCredit also agreed to buy the Polish banking provider Vodeno and the Belgian digital bank Aion Bank SA.
European banks have seen their profits skyrocket over the past three years due to soaring interest rates. Banks make profits from the difference between the interest they charge borrowers and the interest they pay depositors, and these profits rise when interest rates increase.
Source: tovima.gr
Latest News
Societe Generale (SoGen) ‘Bullish’ on European Periphery Markets
The French firm says Portugal, Italy, Ireland, Greece, and Spain are good options for investors due to economic growth and political stability
Sounion Tanker Salvage Operation Underway in Yemen
Earlier this morning, the Greek rescue vessel arrived on the site, accompanied by strong military forces, including three frigates, helicopters, and a special forces unit
Moody’s Retains Ba1 Rating For Greece; Outlook Positive
Moody’s is the last of the major credit rating firms not to have upgraded the Greek economy to 'investment grade', retaining the Ba1 rating - a notch below
Greek Businesses Posted a 12.7% Increase in Turnover Last July
The data concerns companies maintaining double-entry bookkeeping, and for which monthly data are available.
Prime Minister Mitsotakis Urges EU to Tackle Energy Crisis as Prices Surge
"Something is not working properly. I don’t expect immediate solutions, but at least someone should address this."
Fraport Greece Airports See 6.4% Rise in Passenger Traffic
Conversely, among the popular island destinations, Mykonos was the only airport to report a decline,
Athenians Among Least Satisfied in Europe Regarding Salary
In contrast to Athenians, people working in Berlin have an average annual gross salary package ranging between €40-000 and €60,000, with a gross salary between €64-70,000 considered good.
Greece Signs 25-Year Concession Deal for Attiki Odos with GEK TERNA
Additionally, the agreement includes further investments and expenditures for upgrades and modernization, totaling 380 million euros over the duration of the concession.
Greek Pensioners Struggle as Taxes and Deductions Outpace Modest Pension Increases
More specifically, around 400,000 pensioners pay a double and arguably unfair tax through the solidarity contribution, which, due to its fiscal cost, will not be restructured.
Volkswagen’s Astypalaia Experiment, A ‘Smart Island’ Success
Alternative mobility options were also offered for permanent residents and tourists which included buses with zero-emissions, car-sharing and electric scooters that could be selected via an app