Monte dei Paschi Board Approves Plan to Shed Bad Loans
July 29 2016 - 4:00PM
Dow Jones News
MILAN—The board of Banca Monte dei Paschi di Siena SpA on Friday
approved a plan to unload a large chunk of its nonperforming loans
and raise fresh capital to try to resolve longstanding troubles at
Italy's No. 3 lender and stave off a government bailout.
According to slides published ahead of a conference call Friday
evening, the bank plans to unload €9.2 billion ($10.3 billion) in
sour loans to a new vehicle.
Monte dei Paschi will also raise up to €5 billion in fresh
capital—or nearly six times its market capitalization—to rebuild
its capital cushion. According to the slides, the bank has lined up
underwriting agreements with a number of Italian and foreign banks
to support the capital increase.
The bank also published first-half results, showing that its net
profit stood at €302 million, 8% lower than the same period last
year.
The bank will hold a conference call later Friday scheduled to
discuss its first-half results.
Write to Deborah Ball at deborah.ball@wsj.com
(END) Dow Jones Newswires
July 29, 2016 15:45 ET (19:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Banca Monte Dei Paschi D... (BIT:BMPS)
Historical Stock Chart
From Jul 2024 to Aug 2024
Banca Monte Dei Paschi D... (BIT:BMPS)
Historical Stock Chart
From Aug 2023 to Aug 2024
