MILAN, Sept 16 Unlisted regional Italian bank
Veneto Banca, which was rescued from bankruptcy by bailout fund
Atlante, posted a first-half net loss of 259 million euros ($289
million), hit by writedowns of risky loans.
The lender also said it had decided not to proceed with the
planned sale of its private banking unit Banca Intermobiliare
and instead consolidate it within the group.
Veneto Banca was taken over by Atlante in June after its 1
billion euro initial share sale failed to draw investor demand.
Atlante has also rescued rival Banca Popolare di Vicenza
which earlier this month reported a first-half loss of 795
Veneto Banca said loan writedowns totalled 258 million euros
in January-June, down from 307 million a year earlier.
It has also set aside a total of 102 million euros for
potential legal claims by clients that have received money from
the bank to buy its own shares.
The 259 million euro net loss is 18 percent higher than last
The phased-in capital ratio stood at 10.74 percent at the
end of June, up from 7.23 percent six months earlier.
The chief executive of Quaestio, the asset manager running
Atlante, said on Friday there had been several expressions of
interest for the two banks but no talks were under way. The two
lenders need to offload their bad loans before being sold, he
Veneto Banca said its gross problematic loans (deteriorati)
totalled 7.9 billion euros at end-June, up from 7.6 billion
euros at the end of last year. Loans to borrowers deemed
insolvent were 3.9 billion euros.
($1 = 0.8960 euros)
(Reporting by Agnieszka Flak and Valentina Za)