EUR 200.00 For Business Accounts Only

BANKING SECTOR REPORT: OPINION OF THE ADVOCATE GENERAL OF THE ECJ ON IRPH (ANÁLISIS BANCO SABADELL)

After analysing the information from the conclusions of the advocate general (where around 70% of cases have previously coincided with the Court’s ruling) that we have discussed with the banks exposed to IRPH in our coverage universe (all of them with the exception of BKT), we believe that the risk initially expected is curbed to a great extent. In line with our view, the opinion of the advocate general opens a scenario of individual lawsuits where the criteria for the cancellation of the clause cannot be apparently based on the non-detailed explanation of the index calculation, and thus the risk of a battery of lawsuits is lower.

Our central-case scenario would assume a lower percentage of lawsuits, whireinforcing our idea that the worst would be already priced in provided that the ECJ rules in line with the opinion of the advocate general.