Increasingly greater attention is being paid to the IPB bank these days, as the government, the Czech National Bank (CNB), IPB and Nomura continue to negotiate the future of this heavily under-provisioned bank. Also, Nomura said it is talking to two potential buyers and hopes to complete a deal this month or by mid-July. Should the current negotiations fail, two scenarios reportedly considered by Czech authorities are (i) forced administration of IPB imposed by the CNB, and (ii) re-nationalization of IPB and a subsequent new sale by the state. IPB stock, the least liquid on the SPAD, has never been a favorite, and it is only the bank’s own purchasing of the stock that prevent it from suffering greater losses. It lost 2% yesterday. Our recommendation remains a reduce.
(Ondřej Daťka)