The share of Credito Valtellinese continues to lose, currently suspended in Piazza Affari due to excessive reduction with a theoretical -32-18%. And the fear generated by the possibility of a capital increase puts the entire banking sector under pressure in Piazza Affari.
On Tuesday, the Institute, in addition to revealing a sharp increase in losses, announced a capital increase of 700 million euros envisaged in the 2018-2020 business plan. The announcement caused surprise among investors and the financial community, which expected a maximum of 600 million euros in recapitalization.
In anticipation of the increase, the Creval board of directors resolved to submit to the approval of the Extraordinary Shareholders' Meeting - which will meet on December 19th - the grouping of shares in the ratio of one new share for every ten existing shares.
“Although the pooling is financially neutral, it is expected to bring benefits, particularly in light of the planned capital increase under option, including the creation of a more efficient and liquid market for the rights during the period of negotiation,” the bank commented in a note.
“We have not received any deadline from the regulators to launch a capital increase. We decided to do it ourselves because we want to face the problem of non-performing exposure decisively, believing that it is essential to put the bank on more solid ground in the future".
As regards non-performing loans, the general manager of Creval, Mauro Selvetti confirmed that the Institute "will face the situation decisively in order to overcome it once and for all".
“What convinced us – said Selvetti – is that the world, Italy and Europe are moving in that direction whereby instead of tackling the issue from time to time knowing that like it or not the NPL bar remains crucial and it is also considered as such by the markets as well as by the regulators, we have decided to face it once and for all having the conditions to do so so as not to have to discuss it any more day by day".
The general manager announced that the plan takes into account the ECB addendum on NPLs, should it be confirmed in the form indicated in the draft. Selvetti confirmed that the group intends to sell 1,6 billion npl through Gacs (Guarantee Securitization of Bad Loans), of which 800 are already classified as bad loans while another 800 million are "unlikely to be paid" but which will be reclassified as bad loans. "Furthermore - added Selvetti - the group intends to sell other non-performing loans on the market for 500 million in the second half of 2018. Overall, Creval has decided to bring the valuation of non-performing loans in the financial statements closer to market prices".
“Yesterday we started sailing, today leaving the port we found some very high waves, but the navigation is very long”. commented the chairman of Credito Valtellinese, Mirio Fiordi, in an interview with Radiocor.
