La Banca Popolare di Milano will ship in the next few days to Bankitalia letter of request for removing add-ons, i.e. the additional capital requirements imposed on Bpm, which absorb a lot of capital. The management council's report on the progress made by the institute in recent months will be sent to Palazzo Koch on Friday.
Yesterday the document was presented to the supervisory board and today it will be examined by the internal control committee, which will prepare a technical report to certify the assessments of the CDG, which in turn will be presented on Friday morning during a new meeting of the CDS . The committee's report will then be attached to the CDG document and the two texts will be sent to Bank of Italy.
The passages in the committee and in the CDS were neither due nor necessary for the green light to the text of the CDG. However, the management board deemed it appropriate to proceed in this way to sanction the unity of Bpm top management on the matter. The CDG document illustrates the interventions carried out by BPM on the critical issues reported by Bank of Italy in 2011, which had led to the introduction of add-ons, also in light of the capital strengthening just completed.
As CEO Giuseppe Castagna explained during the last conference call on the first quarter results, Bpm had already agreed with the Bank of Italy to start the add-on review procedure immediately after the capital increase.
Overall, after the capital increase, the add-ons are worth 8,1 billion euro, with a negative impact of 170-180 basis points on Common Equity Tier 1, which stood at 7,3% at the end of March. Calculated pro-forma, including the removal of add-ons, the capital gain on the sale of the stake in Anima Holding and the capital increase. Pop Milano aims to have a Common Equity Tier1 in the 11% area.
Today in mid-morning, the Bpm stock on the Stock Exchange is up 0,3%, to 0,6685 euros.
