Shares in Austrian bank Bawag slump after short seller takes bet

Bawag’s franchise is “degrading” and the lender has lost retail deposit market share, pushing up the ratio of loans to deposits, the investor said in a presentation

In Ireland, Bawag had reportedly for a nominal sum bought MoCo, a digital mortgage start-up that is eyeing an entry into the market here. It is awaiting regulatory approval.

Bawag shares have slumped the most in three years after shareholder activist investor Petrus Advisers disclosed a short position in the Austrian lender and raised questions about its deposit base, US real estate exposure, and loans to management.

In Ireland, Bawag had reportedly for a nominal sum bought MoCo, a digital mortgage start-up that is eyeing an entry into the market here. It is awaiting regulatory approval.