European states in retreat from banks: 15 billion disposals in 2024

Taking advantage of the record stock market prices in the banking sector, European states are accelerating the placement of share tranches of institutions still in public hands. The latest announcement came yesterday from the Dutch government, which through its financial arm Nlfi put up for sale just over 10% of Abn Amro bank's capital, aiming to reduce the public share from the current 40.5% to around 30%. And to do so it has given the merchant bank Barclays the official mandate to organise a plan to sell shares on the market 'which will become operational in the coming days'.

The proceeds estimated by analysts for the sale of 10.5 per cent, even assuming a discount to the market price, should exceed EUR 1.2 billion considering that the market capitalisation of 100 per cent of Abn Amro was yesterday around EUR 13 billion.

While remaining (for the time being) under public control, the Dutch bank regains full operational autonomy since, with Nlfi's descent to below one-third of the capital, the parties announced that the bank's obligation to inform the state-financed arm in advance of any investment or divestment in excess of EUR 50 million will be dropped.

The sale of a similar 10% stake by the end of the year is also in the Italian government's plans for Mps, after the other placement in 2024, which had concerned 12.5% of the capital with a proceeds of around EUR 650m. Considering that today 100% of Monte Paschi di Siena is worth EUR 6.6bn on the stock market, the Italian state could collect a similar sum to that of the previous tranche.

Adding up the planned sales by Italy and the Netherlands, the disposals of bank holdings by European states in the coming weeks should amount to around EUR 2 billion. Bringing to EUR 15 billion - from EUR 13 billion so far, according to Bloomberg's database - the proceeds realised by various European countries in 2024 through the sale of bank holdings.