Monte Paschi reports €47.4m unexpected loss
Italy's third-biggest bank unexpectedly reported a third-quarter loss as provisions for bad loans almost doubled. Banca Monte dei Paschi di Siena had a net loss of €47.4 million compared with a profit of €42.2 million a year earlier.
Monte Paschi, the world's oldest bank, is the only Italian lender still missing minimum capital requirements set by the European Banking Authority.
Chief executive Fabrizio Viola is seeking €3.4 billion from the Italian government in return for bonds to help bolster its balance sheet.
Paschi's loan-loss provisions increased to €461 million in the quarter from €269 million a year ago.
The lender's Tier 1 capital ratio, a key measure of financial health, decreased to 11.4 per cent on September 30th from 11.7 per cent at the end of June. - (Bloomberg)