UBS CEO: European banks 'in much better shape' now than several years ago
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
CEO Sergio Ermotti of Swiss bank UBS smiles before an annual news conference in Zurich, Switzerland February 2, 2016. REUTERS/Arnd Wiegmann/File Photo
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
WASHINGTON (Reuters) - The European banking system is in "much better shape" than it was several years ago, UBS Group AG
"The last two weeks are a testament to that," Ermotti said at the 2016 Institute of International Finance Annual Membership Meeting in Washington. "The same kind of dynamics seven or eight years ago would have created a major fallout."
The comments came as Deutsche Bank
Ermotti also said that European banks should see some consolidation around geography and client segmentation.
"Each bank should really try to figure out, 'What is my DNA? What is my relevance to clients?'" he added.
Also at the conference, Ana Botin, the new chairwoman of Banco Santander SA (NYSE: SAN), said Europe is not prepared for cross-border mergers between banks as several perquisites, from regulatory measures to efficiency gains, are still needed.
Some regulators and European Central Bank officials have called for more cross-border mergers, arguing that Europe's bloated bank sector must be reduced, given weak profitability, poor efficiencies and excessive competition.
"I don’t think Europe is ready for cross-border consolidation ... I think politically that’s not the path right now," Botin said.
Botin was appointed last month after the sudden death of her father, Emilio. She has said she would push ahead with the international diversification of the lender.
The comments come as Britain prepares to leave the European Union, either in a “hard Brexit” in which in it leaves the EU’s single market in order to impose controls on immigration, disrupting access to the country’s main trading partner, or in a “soft Brexit” in which it keeps in or close to the EU’s single market, retaining many trade and business benefits.
(Reporting by Olivia Oran; Writing by Jeffrey Benkoe and Meredith Mazzilli)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Grupo Financiero Santander México to Allocate $15 Billion Pesos Over the Next Three Years to Support Growth and Drive Innovation
- Italy president pledges to solve government crisis fast
- Gambia's president-elect says loser Jammeh cannot reject polls
Create E-mail Alert Related CategoriesReuters
Related EntitiesDeutsche Bank, UBS, European Central Bank
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!