World’s oldest bank has posted a loss of ($A1.96 billion)
The bank, which was founded in 1472, on Tuesday said in a statement that the bulk of the writedown was taken on its CGU Privati BMPS unit as well Banco Antonveneta, a 2007 acquisition analysts had deemed overpriced.
The writedowns, already announced in June, were made “in the wake of a material deterioration in macro-economic conditions which worsened significantly in the last few months as did forecasts for the banking sector in the 2012-2015 period,” the bank said in a statement.
In the same period last year, the bank posted a 261.4 million ($A317.08 million) profit.
Critically exposed to the eurozone debt crisis, in June BMPS was forced to accept a government bailout, borrowing roughly 1.5 billion euros ($A1.82 billion) in order to pay off debt and shore up its capital.
The bank has also said it would reduce its workforce by 4,600 people by 2015.
MPS, the country’s third-biggest lender, was forced to request state aid earlier in June to plug a capital shortfall and meet tougher European requirements.
Under the scheme negotiated with the government, it will sell 3.4 billion euros of bonds to the Treasury, but will only pay interest on those bonds if it makes an annual profit.
If the bank books a loss, it will issue new shares to the Treasury, which according to a financial source will take a stake of around 3 percent in the bank every time it cannot pay interest.
That looks to be the case at least for 2012 after the bank said on Tuesday it had booked a 1.62 billion euros loss in the first six months of the year, due to big writedowns on goodwill and financial assets.
Analysts who had included the writedowns in their estimates had forecast a loss of around 1 billion euros.
see the templar cross in the logo?
whats with the 3 pillars in the logo?..looks like a dugtrio from pokemon🙂