MILAN, Oct 14 (Reuters) - The key investor in Italy’s Popolare di Vicenza and Veneto Banca - which were rescued earlier this year by the Atlante fund after failing to raise capital on the markets - said on Friday the two banks had unsustainable cost-income ratios.
“I say just one thing: one has a cost-income ratio of 103 percent the other one of 97 percent. I don’t know what to say: a bank with such a cost-income ratio cannot stand up,” said Alessandro Penati, chairman of Quaestio Capital Management which runs the privately-financed Atlante fund.
Italian daily Corriere della Sera reported on Saturday private equity funds interested in buying the two lenders had proposed cutting 3,500 jobs out of 10,000.
Popolare di Vicenza is due to present in coming weeks a new business plan which CEO Francesco Iorio has said will include higher job cuts than previously envisaged.
Reporting by Valentina Za