Il Monte dei Paschi raise the bar ofcapital increase from 2,5 billion up to a maximum of three billion. Furthermore, the Sienese bank closes the 2014 financial statements with a red of 5,34 billion, against a loss of 1,4 billion in 2013. The result was affected by adjustments of around 5,7 billion following the ECB's asset quality review.
The increase in the capital increase was requested after the negative outcome of the examinations by the European Central Bank. This was announced by the Sienese institute, explaining that it has a capital buffer with respect to the Cet1 ratio threshold requested by the ECB which is equal to 10,2% compared to the first indication of 14,3% that Frankfurt had sent. The capital increase consortium will also provide a pre-guarantee on the additional amount. Banca Mps has a proforma Cet1 at the end of 2014, taking into account the increase from 3 billion, equal to 11,4% and the repayment of the 'Monti Bonds' still in the Ministry of Economy's portfolio.
The increase will belaunched in the second quarter of this year“, the CEO, Fabrizio Viola, indicated to analysts, also explaining that there will be “a considerable commitment to sell a series of assets”, and that all the measures of the capital plan presented to the ECB in November will have to be implemented by next 26 July, nine months after the release of the stress test results.
The net exposure of non-performing loans grew by 10% to 23,1 billion compared to 2013. The year also closed with growth in core revenues and a 2,2% drop in operating costs. Earnings before adjustments amounted to 1.473 million, up 28% on the previous year. Loans to customers fell by 8,4% to 120 billion, while direct deposits were stable at 126 billion.
Yesterday, MPS shares closed down by 1,31%. 0,4292 euro.
