Spanish Banks Rise After CaixaBank Real-Estate Sale, Fed Stress Tests

   By Alberto Delclaux 
 

Shares in Spanish banks rose Friday after a flurry of good news on Thursday, including the agreement reached by CaixaBank SA (CABK.MC) to sell most of its real-estate business to Lone Star and positive results from the U.S. Federal Reserve's stress tests.

CaixaBank on Thursday said it would sell 80% of its real-estate portfolio to two Lone Star funds. The Spanish lender said the price hadn't been determined yet, but gave an initial valuation for the whole portfolio of about 7 billion euros ($8.1 billion).

The move followed an earlier media report that Banco de Sabadell SA (SAB.MC) had received seven offers for four portfolios of troubled assets, valued around EUR10.80 billion.

At 0938 GMT, CaixaBank traded 4.7% higher, while Sabadell shares were up 4.6%. BBVA and Santander trailed behind, rising respectively by 3.0% and 2.0%. The last two banks on Thursday passed the Federal Reserve's stress tests, alongside other peers.

CaixaBank's real-estate business sale was well received by analysts, with Bankinter pointing out it improved its balance sheet and reduced capital consumption, while Jefferies said it will bring the bank's non-performing asset ratio well below peer average levels.

Analysts at Sabadell wrote in a note that the news was "very positive," as the sale will rid the bank of its greatest weakness and improve profitability.

Write to Alberto Delclaux at [e-mail]

(END) Dow Jones Newswires

June 29, 2018 06:12 ET (10:12 GMT)

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