TLTRO hedge unwinding bill tops €1.2bn at BNPP, SocGen

Exit from swaps tripped up by ECB’s tightening marred banks’ 2023 throughout

BNP Paribas and Societe Generale swallowed a final raft of losses in Q4 2023 unwinding interest rate hedges tied to drawdowns from the European Central Bank’s targeted longer-term refinancing operations (TLTRO). The year-long clean-up exercise cost the dealers a combined €1.2 billion ($1.3 billion).

The two banks incurred losses of €47 million and €30 million, respectively, in the three months to end-December as they exited swaps that were meant to protect interest margins on loans financed

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