Banca Popolare di Vicenza closed the first half of 2013 with a net profit of 1,6 million. The result, explains a note, is affected by "the significant prudential provisions on loans made in order to strengthen the assets and safeguard the value of the shares". Loan loss provisions amounted to 193 million, with an increase of 73,1% compared to June 2012 following the "strict policies adopted" (+97,3% only for loans to customers).
The annualized cost of credit therefore jumped to 124 basis points from 61. Operating income rose by 2,9% to €545,6 million, while operating expenses amounted to €328,6 million (-1,1%). . The cost/income ratio therefore improved by 2 percentage points to 58,8%. The operating result improved by 9,6%. The bank concluded "in a very short time" a capital strengthening of 506 million, of which 253 million from a capital increase and 253 million from a convertible loan". Pro forma core tier 1 therefore rises to 9%.
