Markets News

ECB asks Italy's BPER for new business plan after Intesa branch deal

MILAN, Oct 2 (Reuters) - The European Central Bank has asked BPER Banca for an updated business plan to include its planned acquisition of more than 500 branches from rival Intesa Sanpaolo by the end of September 2021, a regulatory document showed.

Italian markets watchdog Consob on Thursday approved BPER’s prospectus for its cash call of up to 800 million euros, which the bank needs to fund the purchase of the branches after Intesa Sanpaolo’s takeover of UBI Banca.

As part of its approval, the ECB last month requested a new business plan for the enlarged network, addressing cost cuts, impaired loans and IT investments, BPER said.

BPER said this week it had trimmed its expected net profit for 2021 to 350 million euros ($410 million) from a previous estimate of 375 million euros due to a new closing timetable for the purchase. (Reporting by Andrea Mandalà; Editing by Giulia Segreti and Alexander Smith)