Hypo NOE was able to present solid figures for FY 22. Despite a decline in net fee and commission income, an improved net interest result contributed to solid core earnings. Both cost efficiency and capitalization have improved in FY 2022.
As the EUR credit primary market roared on to the second largest Monday volume in 2023, comments by ECB’s Holzmann sent yields further North. The 2y10y Bund inversion increased to 58bp as a result. Next week’s ECB meeting is casting its shadow over the EUR credit primary market and we expect further strong issuance in the coming days.
US data on durable goods orders pushed UST yields lower late in the session. Euro zone yields extend their rise as traders terminal interest rate bets for the ECB touch 3.9% briefly and pushed “peak ECB” to 2024 for the first time. The European credit primary market saw some interesting deals with a short dated FRN as well as a green senior non-preferred dual-tranche from Italian champion Intesa.
This week it was "Alles Walzer" again on the European credit primary market which will close the week with a volume of over EUR 52.9 bn. Government bond yields widened further after economic data in the U.S. and further comments from ECB and Fed representatives signaled further interest rate hikes.
BAWAG Group AG was able to improve both net interest income and net fee and commission income in the FY 22. However, a one-off effect in Q3 22 (swap contract with the city of Linz) reduced the net result.