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New bank mergers expected in 2021

10 January, Huffington Post

Following the acquisition of Ubi by Intesa Sanpaolo, the Italian banking sector might see new mergers in 2021, as hoped for by the ECB and EBA, considering that the crisis caused by Covid might speed up the process.

UniCredit is rumoured to acquire Mps, allowing the bank to reach total assets for 1,072 billion € and 17.2 billion € market capitalization, becoming the second bank in Italy after Intesa Sanpaolo (859 bln € assets and 3.1 bln € capitalization).

The second possible merger is between Banco Bpm and Bper, which would create the third-largest bank of the country with total assets amounting to 261 billion € and 3.1 billion € market capitalization.

Generally, banks are likely to become larger and provide new services in addition to lending, such as insurances, asset management and financial products. The banking sector is seeking to anticipate the pandemic’s effects, reducing post-merger costs, and resuming generating income for the shareholders.

Source: Huffington Post

Translator: Cristina Ambrosi